the goan I network
MAPUSA
Stating that Sanjivani sugar factory was running in a loss and cannot be started in November this year, Minister for Cooperation Govind Gaude on Tuesday told the Goa Legislative Assembly that the government would decide whether running the factory was viable or not.
“The sugar factory has posted Rs 8.71 crore loss in 2017-18 and accumulated a loss of Rs 101 crore. There is no way we can start operations in November 2019. We have asked for a report on the viability of the operations in the plant. The government will decide whether to continue with the plant or not after getting the report,” Gaude said.
Chief Minister Dr Pramod Sawant, however, assured the House that farmers who have produced sugarcane would be taken care of and adequately compensated.
“A total of 35,346 MT of sugarcane was crushed in Sanjivani Sahakari Sakhar Karkhana during the season of 2018-19 and 17,491 MT of sugarcane was imported during the same season,” Gaude said in a written replay to Congress MLA Pratapsing Rane.
The sugar factory was started in 1973-74 and in the period of 45 years, the factory posted profits only seven times.
Rane said the sugar factory was started with a lot of expectation and he was concerned about the interest of the farmers. “After so many years, the factory cannot even break even. The government should find out whether alcohol can be produced form sugarcane instead of focusing only on sugar. Otherwise, this factory will never make profit,” said Rane, who is a director and shareholder of the factory.
Participating in the debate, Benaulim MLA Churchill Alemao said from the time he was elected in the august House, the sugar factory has been reporting only losses.
“The factory should be closed. The government should give subsidy to our farmers and their produce should be sold to factories in neighbouring states,” Alemao said.
The Minister for Cooperation informed that the sugarcane produced in the State was very less and the State government has to procure the sugarcane from other states.
He said the sugar factory was in a dilapidated condition and for renovation the government needs to spend at least Rs 35 crore.
He further said that the government has sought a report about the viability of the factory from an expert committee to take a final decision in the matter.
The chief minister said the government has not yet decided whether to build a new factory or shut it down.
Ponda MLA Ravi Naik and Sanguem MLA Prasad Gaonkar also spoke on the issue.
