Long wait for sugar cane farmers in Telangana has come to an end with the Telangana Government deciding to taking over the administrative control of the century-old Nizam Sugar Factory. It would buy back the stake held by the private player, besides paying the dues to the tune of Rs 60 crore.

The factory was formed in 1921 at Bodhan (Nizamabad district) with a catchment area of about 15,000 acres of sugar cane area. It later expanded its operations by setting up two more units to cover parts of Medak and Karimnagar.

The farmers have been fighting for the last 15 years, asking the government to revive the Co-operative sugar factory that once regarded as bellweather for the sugarcane industry in the State.

Telangana Chief Minister K Chandrasekhara Rao has announced setting up of a high-level committee with Secretaries of relevant Government departments to prepare modalities for the take over. The Government owns 49 per cent in the factory, with the remaining controlling stake behind held by Delta Sugars.

Farmers have been waging a legal battle too on the issue. The Andhra Pradeh High Court had directed the Government in January 2014 not to go ahead with the privatisation process.

The then Government had appointed a Group of Ministers in 2013 to speed up the process of privatisation. This however was against the recommendations of a House Committee. We moved the High Court, contesting this move and praying for stalling the process,” Appi Reddy, a sugar cane farmers’ association leader, told Business Line.

He, along with others, has been campaigning for the restoration of the factory in the cooperative sector.

“We welcome this move. This will go a long way in addressing the challenges the sugar cane sector is facing in the State,” he said.

The farmers allege that the Government had systematically killed the factory to benefit the private sector.

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