In a crucial decision aimed at easing the financial strain on sugarcane farmers, the state government has taken a proactive step to settle outstanding dues owed to the Power Corporation of Bajaj Group’s Lalitpur Power Generation Company. With a total amount of Rs 1361 crore allocated for this purpose, the government’s objective is to expedite the clearance of pending payments to sugarcane farmers, which has been a long-standing issue.
The dues faced by sugarcane farmers in the state have reached an alarming figure, surpassing Rs 3,000 crore. Among the sugar mills with significant liabilities, Bajaj Sugar Mill stands out as a primary debtor. The Lalitpur Power Generation Company, which is a part of the Bajaj Group, had been awaiting payments from the Power Corporation, further complicating the financial situation.
In light of this pressing concern, the state government has opted to directly allocate the sum of Rs 1361 crore to the Sugarcane Development Department. This strategic decision ensures that the allocated funds are utilized to clear the dues of the sugarcane farmers without intermediaries. By taking this approach, the state government is committed to expediting the resolution of the longstanding issue of outstanding dues.
As a result of this allocation, sugarcane farmers are expected to benefit significantly. The payment of Rs 1361 crore will substantially reduce the collective outstanding dues on sugar mills. Once the funds have been disbursed, the remaining dues on sugar mills will be reduced to less than Rs 2,000 crore, offering considerable relief to the beleaguered farmers who have been awaiting their payments for an extended period.
The decision, which received approval from the Cabinet through circulation, underscores the government’s commitment to addressing the economic challenges faced by sugarcane farmers. It not only alleviates their financial burdens but also demonstrates a proactive approach to resolving complex financial matters that impact the agricultural community.
