(BCSML) – The management of the BCSML approach the W.O.D.C. for extending financial assistance of Rs.5 crores to take over the 2500 TCD sugar mill of Ponni Sugar Mill Ltd. In this connection, the Hon’ble Minister of State, P.A. & Finance had taken a meeting on 9.6.2003 regarding the revival of M/s Ponni Sugar Mill Ltd., Bolangir through Co-operative and in that meeting the W.O.D.C. was requested to give advance to BCSML, Bolangir to revive the industry. Subsequently, the Hon’ble Minister of State P.A. & Finance requested the Chairman W.O.D.C. to release Rs.3.50 crores as equity support to M/s BCSML anticipating the approval of the Council vide his D.O. Letter No. 1338 dt. 20.06.2003. Thereafter, anticipating the approval of the Council and at the behest of the Government Rs. 3.50 crores was provided to BCSML as a revival package in the month of June 2003. This was approved by the W.O.D.C. in the Council meeting dt. 7.7.2003. The financial assistance to BCSML has also been discussed i9n the meetings on 15.11.03, and 28.4.04 and the Council has approved to extend the financial assistance of Rs. 5.00 crores. The decision of the Council was unanimous with an aim to help the sugar cane growers of Bolangir and neighboring districts. It may be mentioned that through the first phase of Rs. 3.50 crores was released prior to the approved of the Council this has been retified by the Council in the subsequent meetings.
The assets of rest-while Ponni Sugar Mill Ltd. Was taken over by BCSML and it was put to operation in February, 2004 and crushing of 19700 MT sugar cane, collected from 2177 farmers, was done. 17721 quintal of sugar was produced. After revival of the sugar mill the farmers have evinced keen interest in sugar cane cultivation and in the succeeding years more and farmers would be encouraged to grow sugar cane and they will be benefited from this sugar mill.
Regarding the power of the Council to extend this financial assistance in shape of equity support to BCSML, this was examined by the Government and the Government after a reference being made to the Advocate General, Orissa have endorsed the opinion of the Advocate General that the investment made by the Council is proper, legal and intravires of the W.O.D.C. Act-2000 and Self Help Co-operative Act-2001. |
