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Govt withdraws sops to sugar mills

THE STATE Cabinet today decided to withdraw concessions given to various sugar mills in UP.A decision in this regard was taken at the State Cabinet?s meeting, which was presided over by Chief Minister Mulayam Singh Yadav, here today.

india Updated: Feb 05, 2006 01:20 IST

THE STATE Cabinet today decided to withdraw concessions given to various sugar mills in UP.

A decision in this regard was taken at the State Cabinet’s meeting, which was presided over by Chief Minister Mulayam Singh Yadav, here today.

Although decisions of the State Cabinet were not briefed to mediapersons, sources said a decision to withdraw the concessions given to sugar mills was taken in view of an improvement in their financial situation. At some places sugar mills were paying over and above the State advisory price, said a senior officer.

The State Government was so far providing the sugar mills a concession of 75 paise per quintal, the amount the mills pay to cane cooperative societies. The sugar mills had been paying 3 per cent of Statutory Minimum Price to cane cooperative societies. A relief of 75 paise per quintal had been granted to sugar mills following Supreme Court’s orders that mills would pay state advisory price to the farmers.

As per the decision, sugar mills would now have to give 3 per cent of the Statutory Minimum Price (SMP) to cane cooperative societies as concession of 75 paise per quintal would not be available to them.

In another decision, the State Cabinet also decided to withdraw a relief of Rs 1.75 per quintal on the purchase tax levied on sugar mills. A purchase tax of Rs 2 per quintal is levied on sugar mills that were paying a tax of 25 paise per quintal in view of concession of Rs 1.75 per quintal. The State Government is likely to get a sum of Rs 110 crore as purchase tax following the decision to withdraw concession.

The State Cabinet, however, decided not to make any changes in transport charges of Rs 5.75 per quintal that sugar mills are entitled to deduct from the farmers on sugarcane delivered at purchase centres instead of mill gate.

The State Cabinet also gave its nod to the UP Chakbandi Lekhpal Service Rules.

A separate State cadre has been created for them. There are 5700 chakbandi lekhpals in UP. The recruitment would be conducted by holding a written examination outside their respective district.

Sources said, the State Cabinet also decided to defer a decision with regard to levying of stamp duty on company tax matters.

The State Cabinet also deferred a decision on UP Palika aur Jal Kal Abhiyantran Seva Abhiyantran Seva Niyamawali, 1996, on the request of Minister for Urban Development and Parliamentary Affairs Mohammad Azam Khan.

First Published: Feb 05, 2006 01:20 IST