MUMBAI: The election-bound state govt has recommended that the National Cooperative Development Corporation (NCDC) extend loans worth Rs 815 crore to five cooperative sugar factories linked to politicians from the ruling parties in the Mahayuti alliance.
Loans from the NCDC require a state guarantee, which will add to the liabilities of the state — it already faces a debt of over Rs 7.8 lakh crore owing to sops announced in the pre-poll budget and the finance department has said its fiscal deficit is around Rs 2 lakh crore and will not be possible to fill.
"We have recommended that the NCDC give these loans because sugar factories give back to the state and its economy," cooperation minister Dilip Walse Patil said.
On the state guarantee, he said: "This will only matter if the loan is not repaid."
Four of the beneficiary factories are in Kolhapur, where the Shiv Sena and the Shiv Sena (UBT) face a prestige battle. The Shiv Sena (UBT) had developed a base in the area before it split and chief minister Eknath Shinde is keen to retain his dominance after his party won the Hathkanangle seat here in the Lok Sabha election.
Cooperative sugar factories are closely linked to the rural economy and a network of farmers, a reason why they are politically significant.
The state recommended a loan of Rs 200 crore for the Sharad cooperative sugar factory in Kolhapur's Hathkanangle. The factory is linked to independent MLA Rajendra Patil Yadravkar, who was a minister in the MVA govt but backed Shinde after the Shiv Sena split. He was said to be sulking after he did not get a ticket from Hathkanangle.
The state recommended a loan of Rs 150 crore for the Sadashivrao Mandlik cooperative sugar factory in Kolhapur's Kagal taluka. It is linked to former MP Sanjay Mandlik from the Shiv Sena.
It recommended a loan of Rs 164 crore to the Kumbhi Kasari cooperative sugar factory in Kolhapur's Karveer taluka. The factory is linked to Shiv Sena politician and former MLA Chandradeep Narke.
The Chhatrapati Rajaram cooperative sugar factory in Karveer taluka was picked for a loan of Rs 176 crore. It is linked to BJP politician and former MLA Amal Mahadik, cousin to MP Dhananjay Mahadik.
The state recommended the Sahakar Maharishi Shankarrao Kolhe cooperative sugar factory in Ahmednagar be given a loan of Rs 125 crore. It is linked to BJP politician Vivek Kolhe.
It is the second time Kolhe's factory has been recommended for the NCDC loan by the state. The state had revoked its permission for the loan in July. It was speculated that the reason was revenue minister Radhakrishna Vikhe Patil's son Sujay's loss in the Lok Sabha election. Local politicians who were considered uncooperative towards the Mahayuti had faced its wrath.
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