MLC urges Karnataka CM and his Cabinet colleagues to decide on waiving sugar factory’s electricity dues to CESC

Mysore Sugar Company Ltd. (Mysugar), restarted in 2023 after years of closure, is at risk of losing power supply due to outstanding dues of ₹52.25 crore to Chamundeshwari Electricity Supply Corporation (CESC), reports The Hindu.

In a notice for disconnection dated June 3, CESC has warned the General Manager of Mysugar, Mandya, of power disconnection if the company does not pay the outstanding amount of ₹52,25,15,943 as of May 1, 2024. CESC highlighted that Mysugar had failed to make any payment towards the arrears despite repeated notices.

Congress MLC Dinesh Gooli Gowda has written to Chief Minister Siddaramaiah, with copies to Deputy Chief Minister D.K. Shivakumar, Energy Minister K.J. George, and Minister in charge of Mandya N. Cheluvarayaswamy, drawing their attention to the poor financial condition of the sugar factory and its inability to clear the outstanding electricity dues.

Gowda stated that the sugar factory, which is running at a loss of several crores, will not be able to crush sugarcane during the upcoming season if it spends such a huge sum of money to clear the outstanding electricity dues. He urged Mr Siddaramaiah and his Cabinet colleagues to consider waiving Mysugar’s electricity dues to CESC to ensure the factory’s smooth functioning.

A large number of sugarcane farmers in the region rely on the sugar factory to crush their produce. Gowda emphasized that Mysugar is Karnataka’s only government-owned sugar factory. Established in 1933, Mysugar was the first sugar mill in the State and is considered a source of pride for Mandya.

The factory had been in dire straits, with crushing operations suspended for the past few years until they resumed in 2023. However, the factory’s electricity bill has remained unpaid for the last 25 years. Gowda noted that the operations at Mysugar were revived only after the Congress government took a keen interest in supporting the sugarcane farmers of the region.

He acknowledged that the factory was able to resume operations after the Congress government sanctioned ₹50 crore, including ₹35 crore as working capital. Thanks to this financial assistance, Mysugar was able to crush 2.41 lakh tonnes of sugarcane grown by farmers in Mandya last year, and the dues to the farmers were cleared by the sugar factory.

The factory plans to crush another 2.5 lakh tonnes of sugarcane in the upcoming year. Gowda called on the government to waive the outstanding electricity dues and support the farmers who depend on Mysugar to crush their sugarcane.


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