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Nizam Deccan Sugars Reopening Delayed Amid Unresolved Talks
Nizam Deccan Sugars is a sugar factory company with a unit at Mutyampet.
Its factories have been closed for 11 years.
The government formed a committee to look at reopening the units, but discussions have not moved forward over the past year.
A private company, Delta Papers, owns most of Nizam Deccan Sugars, and an agreement with it has not been reached.
The government cleared ₹190 crore of loans, but farmers say that alone has not reopened the factory.
They also say some machines need replacing or updating.
Many farmers have switched from sugarcane to other crops, especially paddy.
Sugarcane-growing land for the Mutyampet unit has shrunk considerably.
Nizam Deccan Sugars Limited has remained closed for 11 years, and reopening plans have stalled.
A Cabinet sub-committee has not held discussions over the past year; talks with Delta Papers Limited, which owns a 51% stake, remain unresolved.
The government cleared ₹190 crore in bank loans through a one-time settlement against pending dues of ₹400 crore.
Farmers say the factory has not reopened despite election promises, and some machinery needs replacement or upgrades before crushing can resume.
Sugarcane cultivation for the Mutyampet unit has fallen to 1,500–2,000 acres from 8,000–10,000 acres.
- Who
- Nizam Deccan Sugars Limited, Delta Papers Limited, the Telangana government, and sugarcane farmers.
- What
- The reopening of Nizam Deccan Sugars' units has been delayed amid unresolved talks with Delta Papers Limited.
- Where
- The units are in Telangana, including Mutyampet in Jagtial district.
- When
- The units have been closed for 11 years; the Cabinet sub-committee has not held discussions over the past year.
- Why
- The article identifies the lack of an agreement with Delta Papers Limited as a reason for the delay; farmers also cite the need to replace or upgrade machinery.
Farmers' concerns
Government actions reported
Progress toward reopening
Farmers' concerns
Farmers say committees and promises have not led to the factory reopening, and Sugarcane Growers Association president Mamidi Narayana Reddy says the delay stems from the lack of an understanding with Delta Papers.
Government actions reported
The government formed a Cabinet sub-committee, visited the factory and spoke with farmers, and cleared ₹190 crore in loans through a one-time settlement; the article reports that reopening remains unresolved.
What is needed to resume operations
Farmers' concerns
Farmer Nyavanadi Limba Reddy says the cleared loans are not enough and that some machinery must be replaced or upgraded.
Government actions reported
The article reports the loan settlement as a government step but does not report a decision on machinery replacement or reopening funding.
Key facts
- Factory closure
- The three units were closed after a lay-off was announced on December 23, 2015.
- Private stake
- Delta Papers Limited holds a 51% stake in Nizam Deccan Sugars Limited.
- Loan settlement
- The government cleared ₹190 crore in bank loans under a one-time settlement against pending dues of ₹400 crore.
- Mutyampet sugarcane area
- The area has declined to 1,500–2,000 acres from 8,000–10,000 acres.
- Committee
- A Cabinet sub-committee headed by IT and Industries Minister D. Sridhar Babu examined the reopening issue.
- Original factory
- The seventh Nizam established a sugar factory at Shakkarnagar near Bodhan in 1937.
Sources
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