UP sugar industry seeks ‘preferential treatment’ for clearance of power dues

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Updated: May 19, 2020 2:22:32 PM

In a letter to the chairman, UPPCL, Uttar Pradesh Sugar Millers Association (UPSMA) has pleaded for a “preferential treatment” in the release of their dues that have been pending with the Uttar Pradesh Power Corporation (UPPCL) since the past 15 months.

UP sugar industry, Uttar Pradesh, UPPCL, power dues, sugar industry ,power discoms, latest news on UP sugar industryThe UP sugar industry is already saddled with massive cane price dues touching a staggering Rs 15,000 crore .

Encouraged by the Centre’s announcement of a Rs 90,000-crore relief package for power discoms, the sugar industry in Uttar Pradesh is hoping that its Rs 1,500 crore cogeneration dues will be cleared soon.

In a letter to the chairman, UPPCL, Uttar Pradesh Sugar Millers Association (UPSMA) has pleaded for a “preferential treatment” in the release of their dues that have been pending with the Uttar Pradesh Power Corporation (UPPCL) since the past 15 months.

“The sugar industry has been encouraged by the announcement of a relief package to discoms that has been given for the exclusive purpose of clearing liabilities towards generators and we are sure that liquidation of dues the cogeneration power supplied by the sugar mills would get a preferential treatment,” said Deepa Guptara, secretary general of UPSMA, in the letter, adding that the payment will be majorly used to pay sugarcane farmers for their cane supplies.

“Sugar mills are expected to clear the cane dues at an early date as it is directly linked to the rural economy. It is therefore imperative that receivables are collected on an urgent basis in the interest of the cane farmers,” it said, adding that the matter has turned into a serious crisis as all the other revenue streams of the sugar mills have been badly impacted due to the prevailing situation.

The UP sugar industry is already saddled with massive cane price dues touching a staggering Rs 15,000 crore and experts feel that by the time the sugar season ends in another 15-20 days, cane dues will swell by an additional Rs 2,000 crore.

“The situation in the sugar industry is getting scarier by the day. While on one hand, all our revenue streams have been choked due to the lockdown, on the other hand, we are seeing an upswing in cane plantation for next year. With such huge carryover liability and growing cane acreage, we do not know where will we go,” said a sugar miller on condition of anonymity.

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