ONGOLE: Finally, there is light at the end of tunnel for the staff of Ongole Dairy and dairy farmers. The salary arrears to the staff and payment dues to the farmers will be cleared in the first week of July after the general body meeting.
A decision to that effect was taken in the meeting chaired by Forest and Environment Minister Sidda Raghava Rao on Friday. The meeting, attended by Ongole MLA B Janardhan, MLC Karanam Balaram, district collector V Vinay Chand and other officials, discussed the future course of action to bailout the dairy, which is in financial distress. Chief Minister N Chandrababu Naidu has agreed to extend financial aid to the dairy.
Briefing the mediapersons about the decisions taken in the meeting, Sidda Raghava Rao said the State Government has agreed to extend `35 crore on recovery basis. “The amount has to be repaid to the government in 15 years. For the first three years, no interest will be charged, but from the fourth year onwards, an interest of 4.5 percent will be collected,” he explained. Ongole Dairy’s dues stand at ` 52.57 crore, and bankers have come forward to extend a loan of ` 58 crore, the minister said. According to him, salary arrears, farmers’ payments, and pending bills will get cleared on priority basis.