The Hindu Business Line : AP Govt working on modernisation package for co-op sugar factories

Announcing this here at a press conference, Dr J. Geeta Reddy, Minister for Sugar, Tourism and Major Industries, said post expansion/modernisation, the factories could go for cogeneration while expanding sugar production.

The factories would then have a uniform capacity of 2,500 tcd (tonnes crushed a day) and 6.5 MW of power generation.

This year, the Government would expand Sri Vijayarama Gajapathi (Vizianagaram) and Sri Venkateswara (Renigunta, Chittoor district), while creating co-generation capacity at the Chodavaram and Kovur factories. The package would be rolled out to the rest of the factories in the next financial year.

The Minister said nine co-operative factories would require Rs 194.50 crore towards working capital needs. The Andhra Pradesh State Cooperative Bank would provide the financial support with a guarantee from the State Government.

In a bid to encourage sugarcane growers, the Government had decided to give back Rs 60 collected as purchase tax on every tonne to the growers. "States like Maharashtra and Gujarat do not offer this," she said.

Referring to the growers' demand that they should get Rs 1,400 a tonne in view of the increased cost of cultivation, she said the Government had represented to the Centre to pay MSP (minimum price) of Rs 920 a tonne on 8.5 per cent recover rate.

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