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JUL 10 2018

Power Corporation yet to pay Rs 800 crore dues to mills, farmers bear brunt

  • Economic Times, ET Bureau / Hyderabad
  • Created: Tue 10th JUL 2018

 

The UP Power Corporation is yet to pay Rs 800 crore pending dues to the sugar mills for the electricity they produce. The figure is roughly 7% of the Rs 12,000 crore that the mills owe to sugarcane farmers.

According to the data provided by the sugarcane department, around 119 sugar mills in UP owe Rs 12,000 crore to farmers. Around 46 out of the 119 mills generate electricity and sell it to the power corporation during the crushing season.

According to a mill officer who did not wish to be named, “If the sugar mills are paid the dues of Rs 800 crore by the Power Corporation, they will be able to pay at least 7% of the pending dues of farmers. Sugar prices have jumped here but mills cannot exceed a specified quota in selling sugar. The state government had asked the centre to increase the quota in UP so they could clear the dues, but in vain.”

Of the nine mills in Bijnor district, six produce power. The Power Corporation owes Rs 6 crore to Syohara sugar mill, Rs 40 crore to Dhampur mill, Rs 7.5 crore to Afzalgarh mill, Rs 3 crore to Bundki mill, Rs 3.46 crore to Bilai mill and Rs 5.80 crore to Barkatpur mill.

Speaking on the issue, additional cane commissioner, VK Shukla said, “The Power Corporation in the state owes around Rs 80 crore to the mills. We have written to the authority concerned so the amount is paid. The corporation paid around Rs 100 crore to the mills a few days ago. The rest of the dues may be paid soon.”

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Power Electricity

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