Industrial houses vie for sugar factories

PUNE, Oct 19: Even as Maharashtra's sugar barons are divided over the Centre's de-licensing policy, a few industrialists, including the V...

PUNE, Oct 19: Even as Maharashtra8217;s sugar barons are divided over the Centre8217;s de-licensing policy, a few industrialists, including the Videocon and Manikchand groups, are competing with each other to set up sugar mills in the State with political support.

The Industry Ministry has already issued registration nominations to as many as 212 private investors for mills of capacity varying between 500 and 2,500 tonnes, according to sources in the sugar commissionerate, here.

The Manikchand group has sought permission for a 2,500-tonne capacity factory in Shirur tehsil of Pune while Videocon has plans to set up two 500-tonne capacity factories in Aurangabad and Gangapur tehsils.

The license seekers have blocked western Maharashtra and Marathwada in view of the statutory provision to maintain a minimum of 15 kms between two sugar factories, the sources said.

A record number of 32 proposals have been forwarded from Solapur district, of which two have already been sent to the Central Government. Otherproposals are from Latur 26, Pune 25, Aurangabad, Sangli and Osmanabad 19 each, Ahmednagar 13, Beed 11, Kolhapur 10, Satara 9, Jalna 7 Dhule 6, Jalgaon 5, Nanded and Parbhani four each, Nashik 2 and Buldhana, one.

In Pune, the Manikchand group has proposed the 2,500-tonne capacity factory while the rest range between 500 tonnes and 1,250 tonnes, the sources said.

Ranas, the sugar giants from Uttar Pradesh, have planned two factories in Pandharpur and Karmala near Solapur. Besides, Deputy Chief Minister Gopinath Munde, former chief minister Shivajirao Patil Nilangekar, former minister Vilas Deshmukh, former Assembly speaker Shankarrao Jagtap, members of the Legislative Assembly Amrish Patel Dhule, K M Patil Jalgaon, Vitthal Jadhav Nanded, Ashok Patil Beed, Suresh Varpudkar Parbhani, Ashok Dongaonkar Aurangabad, P D Patil Karad, Baban Pachpute Ahmednagar, Jayant Patil Sangli, former member of Parliament Udaysinh Gaikwad and entrepreneur D Y Patil have also soughtlicenses under the privatisation policy.

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The investors have sought additional area under sugarcane cultivation and availability of additional water storage capacities. According to estimates by S Surana, finance advisor for more than half the State8217;s sugar factories, at least 40 more sugar mills could thrive in the State.

Surana, however, was sceptical about installation of 55 new factories in the cooperative sector as installation costs would range between Rs 10 crore and Rs 22 crore, depending upon crushing capacities.

Industry observers feel that the entry of private investors would put sugar units in trouble. The State had about a dozen private sugar mills prior to 1960. Of these, only three 8211; Ravalgaon, New Phaltan and Saswad Malinagar 8211; are functioning.

Not all private investors will get licenses, the sugar commissionerate sources said, adding the picture will be clear after another survey of villages.