Karnataka Govt Withholds Decision To Lease Mysore Sugars

: Karnataka government on Monday decided to withhold its decision to lease the Mandya-based The Mysore Sugars Company Ltd (MySugar) temporarily, and would constitute an expert committee to recommend to it about the company's future.

Also, it said the factory would commence crushing of sugarcane from the next season.

Chief Minister Basavaraj Bommai today chaired a nearly three-hour-long high-level meeting with senior Ministers, public representatives and farmers' representatives from Mandya district here to discuss about MySugar following opposition against leasing it.

"An expert committee will be set up to study the condition of the machinery and other technical aspects, finances needed to restart the factory and the working capital needed to make payment to farmers for sugarcane in consultation with bankers," he said.

Speaking to reporters here after the meeting, he said the committee would also study the aspects of value addition of converting molasses and also whether the molasses would be used in distillery or for ethanol with an aim to make the factory financially viable.

To supervise the factory, an efficient officer would be appointed as the managing director with industrial expertise, and an accountant recommended by the Auditor General would be appointed, Bommai said. "The report submitted by the expert committee will be placed before the Cabinet to take a final decision," he said

Pointing out that an earlier Cabinet had decided to hand over the factory on lease, he further said, "If it has to be changed, it has to be decided by the Cabinet itself, we will take a decision based on the committee report...till then it has been decided to withhold the earlier decision to privatise (to lease) for now."

Opposition parties JD(S) and Congress have also opposed the move.

Recently, the Chief Minister met the farmers and assured them of an amicable solution.

Stating that the government is firm in its decision to restart crushing of cane from the next season, Bommai today said he would immediately release funds required for updating or overhauling the machinery required for the purpose.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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