MUMBAI: Ahead of Maharashtra assembly elections, the BJP-led Mahayuti government has approved Rs 1590 crore loans for 11 co-operative sugar factories linked to the ruling alliance leaders.
The state finance department has approved the loans from the National Cooperative Development Corporation, officials said. The state government’s guarantee is mandatory while disbursing NCDC loans.
According to the sanctioned list, a loan of Rs 97.76 crore will be given to Loknete Sundarraoji Salunkhe cooperative sugar factory in Beed district, which is controlled by NCP (Ajit Pawar) MLA Prakash Salunkhed.
Saint Damaji cooperative sugar factory in Solapur will get Rs 94 crore and Vriddheshwar cooperative sugar factory in Ahmednagar Rs 93 crore. The government also sanctioned Rs 140 crore to Loknete Marutirao Ghule cooperative sugar factory and Rs 327 crore to Kisanveer cooperative sugar factory in Satara, controlled by NCP MLA Makrand Patil.
A loan of Rs 327 crore has been sanctioned for Tatyasaheb Kore cooperative sugar factory in Kolhapur, controlled by Vinay Kore who is linked to BJP. Ambhejogai cooperative sugar factory in Beed will get Rs 80 crore loan.
“Most of these sugar factories are controlled by leaders linked to the NCP led by deputy CM Ajit Pawar and the BJP,” an Opposition leader said, wishing not to be named.
Earlier, the state government had decided not to sanction any loan to these sugar factories, but the decision was changed ahead of the assembly elections due by the year-end, the leader said.
As per the terms and conditions, the cooperative sugar factories will repay the loans with 9.81% interest in next eight years. If they default in payments, action can be taken against them. Cooperative sugar factories are closely connected to the rural economy and influence politics.