Kolhapur District Central Cooperative Bank decides to sell Daulat sugar factory

Kolhapur: The Kolhapur District Central Cooperative Bank (KDCC) has decided to sell the machinery and land owned by Daulat Cooperative Sugar Factory at Halkarni in Chandgad, which has been non-functional for the past few years following financial misappropriation.
Earlier, the KDCC, which has taken charge of the factory, decided to lease it out to Karnatak-based Kumuda Sugars to protect the interests of local sugarcane farmers.Also, the Kumuda Sugars had submitted deposits worth Rs 1 crore with the KDCC for signing the deal. But later it withdrew from the deal.
Consequently, the KDCC board of directors met on Saturday and decided to sell the factory to recover the dues and settle the issue forever. Fresh tenders will be floated on Tuesday. As per the reports released by the bank, Daulat sugar factory has cumulative dues of Rs 350 crore. Of this, Rs 65 crore is basic loan amount.
"The bank has been facing financial crisis for the past few years due to such bad loans. We have the land and the machinery, which we will sell and recover the dues," officials said.There had been eight tenders from time to time to lease out the factory but all attempts were in vain.
Local leaders like Narsingh Gurunath Patil, who was controlling Daulat, is against leasing out of the factory. If the factory goes to any other operator, Patil fears losing chances of making a comeback in the local politics because sugar factories are a major tool to influence a tehsil's politics.
State cooperation minister Chandrakant Patil has expressed his disapproval of Bhosale taking control of Daulat sugars. Patil on Friday said that the factory should fall in good hands.