1 week ago
Maharashtra Clears Rs 335 Crore for Mahayuti-Linked Sugar Mills
The Maharashtra government has approved large loans for two cooperative sugar factories.
These factories are connected to leaders from the ruling Mahayuti alliance.
One factory, linked to MLA Vinay Kore, will receive Rs 160.37 crore.
The total approved for both factories is Rs 335.32 crore.
The money is being provided through the National Cooperative Development Corporation.
Sugarcane crushing season begins in October or November, so the factories need money soon.
Banks have become more cautious about lending because some mills have not repaid old loans.
The decision has attracted attention because an earlier Rs 18 crore loan to another politically linked factory had already caused criticism.
The Maharashtra government approved Rs 335.32 crore in loans for two cooperative sugar mills linked to Mahayuti leaders.
The assistance was routed through the National Cooperative Development Corporation (NCDC) ahead of the October-November crushing season.
Tatyasaheb Kore Warana Cooperative Sugar Factory was sanctioned Rs 160.37 crore.
The Warana factory must use the funds to repay Kolhapur District Central Cooperative Bank borrowings and its NCDC loan within two years.
The approvals follow criticism of an earlier Rs 18 crore loan to a factory associated with BJP MLA Abhimanyu Pawar.
- Who
- The Maharashtra government approved assistance for two cooperative sugar mills linked to Mahayuti leaders, including Tatyasaheb Kore Warana Cooperative Sugar Factory, associated with MLA Vinay Kore.
- What
- The government cleared loans totalling Rs 335.32 crore through the National Cooperative Development Corporation.
- Where
- Maharashtra; the named factory has borrowings from the Kolhapur District Central Cooperative Bank.
- When
- The decision came weeks after criticism of an Rs 18 crore loan; it was made ahead of the October-November sugarcane crushing season.
- Why
- The assistance is intended to support mills before crushing season and help the named factory clear outstanding borrowings and repay its NCDC loan.
Government Rationale
Criticism and Concern
Financial assistance to sugar mills
Government Rationale
The government is facilitating loans ahead of the sugarcane crushing season, when mills require financial support and cooperative banks have tightened lending because of outstanding defaults.
Criticism and Concern
The latest approvals have drawn scrutiny because they involve mills linked to ruling Mahayuti leaders and follow criticism of an earlier Rs 18 crore loan to a politically associated factory.
Loan repayment
Government Rationale
The named Warana factory has been directed to use the funds to clear borrowings from the Kolhapur District Central Cooperative Bank and repay its NCDC loan within two years.
Criticism and Concern
The reported defaults and need for government-facilitated assistance raise questions about lending to mills with outstanding obligations, although the article does not provide specific objections from critics.
Key facts
- Total assistance
- Rs 335.32 crore for two cooperative sugar mills
- Funding channel
- National Cooperative Development Corporation (NCDC)
- Named recipient
- Tatyasaheb Kore Warana Cooperative Sugar Factory
- Named recipient's loan
- Rs 160.37 crore
- Repayment requirement
- The Warana factory must repay its NCDC loan within two years
- Earlier controversy
- An Rs 18 crore loan to a factory associated with BJP MLA Abhimanyu Pawar drew criticism
- Crushing season
- The sugarcane crushing season begins in October-November
Sources
Related news
Maharashtra Cabinet clears 18-crore loan for BJP-linked sugar factory
Kailaras Sugar Mill Set to Restart After Legislator’s Fast
Rs 5,028 crore reaches 6.22 lakh Maharashtra farmers in waiver
Maharashtra Approves ₹86.65 Crore Relief For Kharif Losses
BJP MLA threatens protest over stalled ₹500 crore road loan
Nashik Farmers Receive ₹86.51 Crore in Loan Waiver
Jarange Accuses Maharashtra Government of Inciting Riots During Fast
Shinde’s Cabinet Absence Raises Questions Over Mahayuti Unity
Fadnavis Urges Booth-Level BJP Drive, Attacks Congress Narratives
Shinde, Jarange Clash Over Rally as Maratha Quota Talks Continue
Jarange Begins 11th Fast, Demands Kunbi Certificates for Marathas
