Karntaka Govt. renews lease of two sugar mills

Bangalore, June 26 (UNI) Karnataka Chief Minister H D Kumarswamy today said that the state government had renewed the lease agreements of Pandavapura Sugar factory with Kothari Sugars by 18 years.

Speaking to newspersons here that the Kothari Sugars had submitted a memorandum to the government saying it had suffered a loss of Rs 15 crore this year and intends to renew the lease agreement for 18 years instead of seven years to make it viable.

The company had made an agreement last year for seven years at a cost of Rs 87 crore, he said.

The government had renewed the agreement for 18 years at a cost of Rs 126 crore now to revive of the factory, he said.

He said the company had agreed to invest Rs 40 crore to purchase new equipment to increase the present crushing capacity to 3500 tones a day.

Mr Kumarswamy said that the government had given its approval for the rehabilitation of 500 families following the demolition of their houses for providing a diversion to a peripheral road in Gottigere area of the city.

UNI