Business Daily from THE HINDU group of publications
Wednesday, Jul 19, 2006
Business Daily from THE HINDU group of publications Wednesday, Jul 19, 2006 |
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Agri-Biz & Commodities
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Co-operatives States - Maharashtra Pawar launches new fund in Maharashtra Our Bureau
Non-generation Profit was passed on to the member of the cooperative in the form of higher rate for sugarcane. Cooperatives could not raise funds or debts for cogeneration plants.
Mumbai , July 18 Co-operative sugar factories in Maharashtra will have to pay income-tax and show profits on book of accounts, said the Union Agriculture Minister, Mr Sharad Pawar, on Monday. He was addressing representatives of co-operative sugar mills after launching the Urja Ankur Fund (UAF). The fund would be used for developing cogeneration capacities in the sugar mills of the State. Mr Pawar said that the sugar co-operative sector in Maharashtra has not been able raise funds for setting up cogeneration plants, as they never had balance funds. Profit made by the cooperatives was passed on to the member of the cooperative in the form of higher rate for sugarcane. Consequently, they could not raise funds or debts for cogeneration plants. Cooperatives also could not take advantage of the Sugar Development Fund, he said. "Out of the total Sugar Development Fund, about 94 per cent of the fund was taken up by private sugar mills and only 6 per cent by cooperatives," Mr Pawar said. He said 5000 MW is the country's capacity for cogeneration, based on bagasse. Out of this, 1100 MW has already been commissioned but in Maharashtra only 32 MW has been commissioned. He urged the representatives of the sugar cooperatives to take up cogeneration with the help of UAF. The UAF is a Rs 418-crore fund in which Maharashtra Government holds a stake of Rs 218 crore and Rs 200 crore is held by IL&FS.
Bagasse-based plants
With the help of the UAF, money would made available for cooperative sugar factories for setting up bagasse-based cogeneration power plants. In the first phase of UAF, bagasse would be promoted for power generation. In the second phase, small hydro, municipal waste and geothermal energy would be considered for power generation. The Maharashtra Minister for Non-Conventional Energy, Mr Vinay Kore, said co-operative sugar factories would get an additional Rs 100 to Rs 150 on every tonne of sugarcane crushed, if they opt for cogeneration. In order to make the scheme viable, sugarcane crushing would have to be six-crore tonne in the State. It would give a return of Rs 600 crore to Rs 900 crore per annum to the farmers. Cooperatives in 11 districts of the State would be able to take advantage of this UAF, he said. Mr Ravi Parthasarathi, Chairman, IL&FS, said that UAF would be able generate Rs 2,500 crore investment and 1000 MW of power. Given the sugarcane potential in Maharashtra, the State should aspire to become `Brazil' of sugarcane in the country, he said. Government sources said that the Income-Tax Department has slapped notices on cooperatives sugar factories for tax collection. Currently the matter is with the Income-Tax Tribunal.
More Stories on : Co-operatives | Sugar | Maharashtra
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