Shinde shuts door on sugar co-ops

He also added that permission would be granted only in rare cases. ‘‘By and large, we will not clear any guarantee proposals in principle,’’ he said.

The decision is a fallout of the depressing debt scenario. The debt is at an all-time high of Rs 83,596 crore. And the guarantees extended to cooperative units and government undertakings is to the tune of Rs 48,800 crore.

Shinde also denied that he DF government had cleared any loan guarantee proposals after taking over from Vilasrao Deshmukh.

When asked about Rs 1,500 crore proposals to extend guarantees to sugar factories, the Chief Minister said: ‘‘How can the Cabinet review decisions taken by the previous team.’’

Shinde, who does not run any sugar factory, is also dealing with yet another tricky issue involving the powerful sugar lobby.

At least ten proposals for contributing share capital in the cooperative sugar factories is pending with the cooperation department.

Half of them have come from Congress and NCP ministers so Shinde is being pressured to clear them. The contribution of share capital (Rs 1.5 crore to Rs 2 crore each) is not similar to extending loan guarantee but it will an put additional financial burden on the state’s coffers.

‘‘The government cannot refuse the proposals sanctioned earlier,’’ Shinde declared, showing his helplessness while dealing with the sugar lobby.

The loan guarantee issue has already maligned the government so far. Financial institutions have already invoked guarantees of Rs 1,400 crore.

In January, the Debt Recovery Tribunal almost attached the Mantralaya office of the cooperation department for its failure to honour the guarantee extended to the Sindkheda Cooperative Sugar Factory.