Archna?s sugar mill issue deferred again

THE STATE Cabinet once again deferred the issue of guarantee against financial institutions? loans to Ishwam Co-operative Sugar Factory in Burhanpur. Former minister Archna Chitnis is chairperson of the co-operative society.

THE STATE Cabinet once again deferred the issue of guarantee against financial institutions’ loans to Ishwam Co-operative Sugar Factory in Burhanpur. Former minister Archna Chitnis is chairperson of the co-operative society.

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Without government guarantee, financial institutions would not give loan to the co-operative society. The factory is yet to start functioning.

The co-operative body’s proposal was taken up in the three Cabinet meetings in the past but the matter was deferred every time. In one of the meetings chaired by the then chief minister Babulal Gaur, Archna Chitnis was almost in tears while pressing for government guarantee. She was minister then. The Cabinet sub-committee, which had been constituted to look into the matter, in its report did not find the project viable.

The Cabinet on Monday also considered different aspects of running the Malwa Cooperative Sugar Factory Ltd. Barlai in Indore district.

It discussed the options of running it by processing the imported raw sugar, giving it to some other competent cooperative institution or running through private parties.