AP Cabinet okays aid to modernise cooperative sugar mills

Hyderabad, July 27 (UNI) With a view to restructuring and modernising four cooperative sugar mills, the Andhra Pradesh Cabinet today decided to extend Rs 58.99 crore as government guarantee, to the National Cooperative Development Corporation.

The Government was bearing 50 per cent of the cost of expansion-cum-modernisation of four cooperative sugar mills, official sources said.

As per the Cabinet decision, The Chodavaram Cooperative Sugars Ltd in Visakhapatnam would get Rs 12.84 crore while Vizianagaram-based Vijarama Gajapathi Cooper Sugars would be allotted Rs 16.88 crore, the sources said.

Besides, Rs 18.28 crore would be extended to the Venkateswara Cooperative Sugars Ltd and Rs 10.99 crore for Kovur Cooperative sugars Ltd, Nellore.

The Cabinet also noted that the once loss-making state-owned Road Transport Corporation (RTC) had made a turn around, by registering a profit of Rs 140 crore.

This U turn followed the proactive steps taken by the government, including reimbursement of expenses incurred on providing concessions in fares to various sections and reduction in motor vehicle tax for the RTC.

Had there been no strike, which cost the RTC Rs 50 crore, it would have made profit last year itself, the Cabinet observed.

UNI SM JJ 1621