Sharad Pawar-headed Vasantdada Sugar Institute directed to submit details on utilisation of state-allocated funds

The state government provides funds to the tune of Rs 5-10 crore to the VSI every year. These funds come from a levy of Re 1 per tonne charged on sugar crushed at mills.

Set up in 1975 by sugarcane growers, VSI’s main objective is to conduct research and development on various activities in the sugar industry. The institute has politicians from different parties in its governing body. While Sharad Pawar is the chairman of VSI, Deputy Chief Minister Ajit Pawar is a trustee.

‘Fund utilisation certificate submitted every year’

Sambhaji Kadupatil, Director-General of VSI, said, “Every year, we submit full information to the government regarding the utilisation of funds. We submit a fund utilisation certificate, issued by a Chartered Accountant, to the government. Besides, we submit a report regarding the research activities undertaken. Only then do we get the funds for the next year.”

Importantly, the Comptroller and Auditor General of India (CAG) also conducts an audit of the VSI, officials said. “This time, the CAG conducted the audit six months ago… Every three years, it audits the VSI. Whenever it has raised queries, we have complied… The CAG audit lasts nearly a month,” an official said.

Kadupatil said the VSI conducts various types of research. “Be it on modernisation of sugar machinery, Detailed Project Reports on new sugar factories, use of byproducts from sugar like ethanal, alcohol, byproducts from molasses… There are at least 25 byproducts. We provide consultancy to sugar mills on these byproducts. We do research on sugarcane production per acre. This requires the training of farmers, use of new varieties, etc.”

“We are now also promoting the use of Artificial Intelligence. All these research activities need funds. We get an average of Rs 7-8 crore every year from the government. And on our own, we have to spend Rs 25 crore. These funds come from the consultancy services that we provide to sugar mills.”

BJP targeting Baramati, VSI: Rohit Pawar

NCP (SP) MLA Rohit Pawar, however, said the BJP is targeting Baramati. “The chief minister has ordered a probe into VSI’s activities. This is not a routine thing. The government is deliberately targeting VSI. The BJP is stooping very low in politics,” he said on Tuesday.

Denying this, Fadnavis said no inquiry has been initiated against VSI. “Some people are trying to create an atmosphere that injustice is deliberately being done to them. I want to say that no inquiry has been ordered by the state government against Vasantdada Sugar Institute,” he said after the Cabinet meeting in Mumbai on Tuesday.

The chief minister went on, “The Sugar Commissioner is only seeking information about the use of funds allocated to the VSI. It is not wrong to ask an institute to account for the funds provided to it every year. Farmers in the state give Re 1 per tonne of sugarcane crushed to the VSI. We have asked the VSI to give us details as to how these funds are used. We took this decision at the meeting…”