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UP sugar mills urge Adityanath to clear Rs 475 cr power dues

Apathy delaying Uttar Pradesh sugarcane farmers payments

Virendra Singh Rawat  |  Lucknow 

sugar, sugarcane
File photo: A farmer works in his sugarcane field

private sugar millers have urged the government for payment of power dues owed by state power utility Power Corporation Limited (UPPCL) to facilitate speedier settlement of farmers’ arrears.

The mills supply bagasse-based power generated to under power purchase agreement (PPA) during crushing season for on-grid supply to consumers.

However, has not cleared dues of about Rs 475 crore pertaining to the previous 2016-17 crushing season. Interestingly, the state mills are bogged down by cane arrears of about Rs 750 crore for 2016-17 season despite several warnings by the Yogi government.

The power dues on make up over 60 per cent of cane arrears on mills, although individual mills have varying amounts of power dues.

Earlier, Association (UPSMA) had written to the state cane commissioner seeking settlement of power dues in the larger interests of farmers, however, no progress has been made so far, an industry official told Business Standard on condition of anonymity.

He said settlement of power dues would enable mills for early settlement of dues of both the previous as well as the current crushing season.

Balrampur Chini Group has maximum power dues on at over Rs 110 crore, followed by DSM at Rs 70 crore and Dalmia Group at Rs 48 crore.

The are engaged in biomass power cogeneration and the surplus power is exported to the state grid via with the terms of settling bills for power supply needs within 30-60 days.

On the other hand, the (Regulation of Supply and Purchase) Act 1953 stipulates payment of cane dues within 14 days, otherwise, additional interest penalty could also be imposed on mills.

Meanwhile, in the current crushing season of 2017-18, the have so far paid the cane over Rs 2,000 crore to against cane purchases. Last year, the mills had paid about Rs 467 in the corresponding period.

Besides, the mills had collectively produced about 1.28 million tonnes (MT) of sugar by crushing a little over 13 MT of cane with the sugar recovery standing at 9.8 per cent.

UP sugar industry and cane development principal secretary Sanjay R Bhoosreddy claimed sugar production and recovery of UP was more than other major sugar producing states viz. Maharashtra, Karnataka, and

According to latest statistics, against UP’s sugar output of about 1.28 MT, the sugar production in stands at 1.22 MT, 0.41 MT and 0.15 MT.

In the current season, the Yogi government has estimated UP sugar output to touch 11 MT and total farmers' payables at almost Rs 30,000 crore. Last season, UP had clocked sugar output of about 8.75 MT and the total payables were to the tune of Rs 25,386 crore. This season, the UP acreage is estimated at 22.99 lakh hectares (LH), up 11.20 per cent, compared to 20.54 LH in 2016-17.

First Published: Wed, November 29 2017. 18:53 IST
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