Date:23/08/2007 URL: http://www.thehindubusinessline.com/2007/08/23/stories/2007082350842100.htm

Back AP Cabinet clears way for sugar cos revamp

Our Bureau

Hyderabad, Aug. 22 The Andhra Pradesh Cabinet has cleared the way for modernisation and expansion of seven cooperative sugar factories at an estimated cost of Rs 267 crore.

The Cabinet, which met here on Tuesday, has decided to turn the Rs 79-crore loan given to five of the seven factories and the tax dues of the factories into equity.

Addressing a press conference, Mr Anam Rama Narayana Reddy, Minister for Information and Public Relations, said the move would help these factories turn their net worth positive, making them eligible for financial assistance from sugar development funds.

The first phase of revamp would cover Chodavaram, Vijayarama Gajapathi, Thandava, Kovur, Sri Venkateswara, Chittoor and Anakapalle factories.

The modernisation and expansion plan is being taken up as per the feasibility report prepared by the Delhi-based National Federation of Cooperative Sugar Factories, the Minister said.

Post expansion, the total capacity of these factories would go up to 18,900 tonnes crushed a day (TCD) from the present 13,450 TCD. Besides, the co-generation too would reach 58.65 MW from 6.15 MW.