Maharashtra government cancels loan guarantee of sugar mills

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Mumbai: The newly formed Maharashtra Vikas Aghadi (MVA) government, led by Chief Minister Uddhav Thackeray seems to be in an action mode. The State Cabinet has cancelled loan guarantee given to four sugar mills belonging to Pankaja Munde, Vinay Kore, Dhananjay Mahadik and Kalyanrao Kale. All are affiliated to the Bhartiya Janata Party (BJP).

An official talking to a leading news website said, “The government had given guarantee under certain conditions, including that there should be no NPAs and there must be a positive net worth. However, when it was found these units had not met conditions, it was decided to revoke the guarantee.”

The decision was taken in a first Cabinet meeting held after winning the trust vote in the State Assembly. The Cabinet took the review of the financial situation and the decision taken by the last government led by Devendra Fadnavis. All the decisions have come under the scanner of the new government.

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