Government plans to lease out the factory to private players for a 40-year period
Bengaluru: Even as uncertainty continues over the future of Mandya’s prestigious MySugar Factory, Chief Minister B.S. Yediyurappa on Tuesday last said that the fate of the nearly century-old sugar factory at Mandya will be decided after a meeting with people’s representatives and farmer leaders which will be held shortly.
Replying to a question by JD(S) MLC K.T. Srikantegowda in the Legislative Council recently, Yediyurappa clarified that though there has been no plans for privatisation of the factory, the Government has decided to let out the factory on lease to private players for a 40-year period as the Government is finding it difficult to run the factory. However, a final decision on letting out the factory on lease will be taken only after holding consultation with local people representatives and farmer leaders.
Sugar Minister M.T.B. Nagaraj said that the factory which was started in 1933 by the then Mysuru Maharajas, has run into trouble in recent years. Pointing out that new machineries and C-generation units were installed in MySugar factory at a cost of Rs. 529 crore when H.D. Kumaraswamy was the CM, he said that the crushing capacity of the factory has increased from 5,000 tonnes to 7,000 tonnes. However, crushing has been stopped from 2019-20 season, he said and added that only 80 acres of land out of the factory’s total area of 150 acres will be leased out.