Bengaluru, Oct 18: Karnataka government on Monday decided to withhold its decision to lease the Mandya-based The Mysore Sugars Company Ltd (MySugar) temporarily, and would constitute an expert committee to recommend to it about the company's future.
Also, it said the factory would commence crushing of sugarcane from the next season.
Chief Minister Basavaraj Bommai today chaired a nearly three-hour-long high-level meeting with senior Ministers, public representatives and farmers' representatives from Mandya district here to discuss about MySugar following opposition against leasing it.
"An expert committee will be set up to study the condition of the machinery and other technical aspects, finances needed to restart the factory and the working capital needed to make payment to farmers for sugarcane in consultation with bankers," he said.
Speaking to reporters here after the meeting, he said the committee would also study the aspects of value addition of converting molasses and also whether the molasses would be used in distillery or for ethanol with an aim to make the factory financially viable.
To supervise the factory, an efficient officer would be appointed as the managing director with industrial expertise, and an accountant recommended by the Auditor General would be appointed, Bommai said. "The report submitted by the expert committee will be placed before the Cabinet to take a final decision," he said
Pointing out that an earlier Cabinet had decided to hand over the factory on lease, he further said, "If it has to be changed, it has to be decided by the Cabinet itself, we will take a decision based on the committee report...till then it has been decided to withhold the earlier decision to privatise (to lease) for now."
The move to lease the State-owned sugar factory, which was established in 1934, has come under opposition from various sections, including farmers, who are staging protests in Mandya.
Opposition parties JD(S) and Congress have also opposed the move.
Recently, the Chief Minister met the farmers and assured them of an amicable solution.
Stating that the government is firm in its decision to restart crushing of cane from the next season, Bommai today said he would immediately release funds required for updating or overhauling the machinery required for the purpose.
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Bengaluru, Mar 6 (PTI): The Karnataka Assembly on Thursday passed the Bangalore Palace (Utilisation and Regulation of Land) Bill, reaffirming state ownership over 472 acres and 16 guntas of land here, amid protests by the opposition BJP.
During the discussion, Karnataka Law and Parliamentary Affairs Minister H K Patil said the state government would have to provide Rs 200 crore worth of Transfer of Development Rights (TDR) for each acre of land, which means that for 15 acres, Rs 3,000 crore worth of TDR would be issued.
“If we accept it, then this 2-km stretch of road will become the costliest road in the world. If we accept it then how are we going to develop the city in later stages? How will you carry out development works?” asked Patil.
He also pointed out that this question was raised not only under the Congress government but also during the previous BJP regime.
However, the BJP-led cabinet has opposed the project.
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“Suppose we agree to it then, what will be the valuation of the 472 acres? It will be lakhs and lakhs of crores of rupees. Can we accept?” Patil wondered.
The Minister said the government had previously exercised its executive powers to issue an ordinance, which was approved by the Governor. Now the government is bringing a bill with two amendments.
“In this bill, we have made provisions either to develop or drop the road development work,” Patil explained.
However, BJP state president B Y Vijayendra and BJP MLA Arvind Bellad opposed the move, alleging that the government was targetting Yaduveer Krishna Datta Chamaraja Wadiyar, the scion of the Mysuru royal family, and the BJP MP from Mysuru-Kodagu constituency out of political vendetta.
“We talk of 472 acres of Mysuru Maharaja but here there are many Maharajas who too own 400 acres, 500 acres and thousands of acres of land, which is known to everyone,” Bellad said.
He slammed the Congress government, saying political power should not be misused for personal vendetta.
“Why (the then Deputy Chief Minister) Siddaramaiah brought the law in 1996 pertaining to the Bangalore Palace? Why are you setting eyes on the Bangalore Palace?” he asked.
Vijayendra charged that Wadiyar won the election on BJP ticket so the state government realised that it should acquire it.
“This bill has been brought for political vengeance. We are not discussing whether Rs 3,000 crore is exorbitant or not but the moment Yaduveer became MP, the state government woke up. You should be ashamed. This house should not be used for political vendetta,” he said.
Intervening, Minister Priyank Kharge said Vijayendra should not have raised it because the intention behind building the road was noble.
According to him, the BJP too had the same plan when it was in power.
He sought to know whether thousands of crores of rupees be spent on a road which should have cost significantly less.
In response, BJP MLA B A Basavaraj (Byrathi) said issuing TDR will not be a burden on the state government and appealed to the ruling Congress to reconsider its stance.
Minister Ramalinga Reddy too explained that the Karnataka government acquired the entire land way back in 1996.
The Mysuru royal family went to the High Court, which gave ruling in favour of the state government. The royal family then approached the Supreme Court, where the case is still going on, the Minister pointed out.
“The final judgment is pending in the SC to decide whether the acquisition was right or wrong. If the SC says it’s the royal family’s property then let it be so. If the order is in the state government’s favour then we can take a decision. The bill is only about it,” Reddy explained.
Speaker U T Khader then called for a voice vote and the bill was passed by the Assembly amidst opposition BJP’s discontent.