BHUBANESWAR: Amid demands from western Odisha leaders for the revival of Bargarh Cooperative Sugar Mills, the state government has finally decided to close the factory which has been lying inoperative since 2016-17.
The decision to liquidate the sugar factory was taken on the basis of a report submitted by its managing director in which it was stated the mill has been lying dormant since 2016-17 with little hope of its business.
In exercise of powers under section 72 of the Odisha Cooperative Societies Act, 1962, registrar of Cooperative Societies, Odisha, Uddhaba Chandra Majhi issued an order on October 16, 2023, for liquidation of the sugar mill with immediate effect.
“As per the audit report for 2022-23, the sugar mill by not doing any business is not fulfilling the objective of the cooperative societies. The accumulated loss of the mill has mounted to Rs 72.59 crore as on March 31, 2023,” Majhi said. He said the sugar mill has eroded its capital as well as borrowings and its share capital is not protected. Besides, not a single meeting of the annual general body of the factory has been held after August 20, 1989 which violates the statutory provision of the OCS Act.
Majhi said a show cause notice was issued to the managing director of the sugar mill on May 9 this year asking him to explain why the factory should not be wound up within a month of the notice. The MD in his report said there is little hope for its revival.
Majhi has appointed additional district magistrate, Bargarh, Lalat Kumar Luha as liquidator of the sugar mill. The state government had made an attempt for revival of the sugar mill by roping in two experts from Central Institute of Sugar, Kanpur for a feasibility study. The experts submitted a detailed project report with a plan outlay of Rs 22 crore for revival of the mill. However, the report was not implemented.
BJP MP from Bargarh Suresh Pujari has also written to Chief Minister Naveen Patnaik reminding the latter about his promise at a public meeting at Sohela in 2015 for revival of the sugar mill. He had requested the chief minister for a grant of Rs 11 crore for the purpose.