The State Government seems to be giving undue protection to the laxmipati Balaji Sugar and Distilleries (P) ltd working at Badamba and encouraging it to do any business ignoring the interests of local farmers. The company has been able to draw crores of rupees from different nationalised banks on surety of the lands and machineries, which were taken from the Government on lease basis. Even though the company deviates from principles of the MoU, the Government’s silence has raised eyebrows among masses.
The Government, when the Congress was in power, had laid the foundation-stone of the sugar mill at Sunapal of Badamba in 1982 with an intention to improve the socioeconomic conditions of local people. The company started production in 1989 with the ownership of the Cooperation Department. But after two years, it stopped functioning for different reasons.
When the Biju Patnaik-led Janata Party Government came to power, it handed over the charges of the mill to Tamil Nadu-based company Shakthi Sugars in 1992 on lease. This company ran the mill for about 14 years and created a landmark history in augmenting the socioeconomic conditions of local farmers, vehicle owners and labourers and irrigated hundreds of acres of lands installing several irrigation projects, financed farmers to purchase seeds, fertilisers, tractors, etc.
Hundreds of local labourers were engaged in loading and unloading works. But when the lease period of Shakthi Sugars ended in 2000 and the general elections took place when a local contestant sought money from the company. When the company did not oblige, the people’s representative tried to create turmoil in the company instigating some workers to agitate. As a result of the ruckus, the company was forced to leave the mill in 2003.
Next year, the Cooperation Department ran the mill, which gave a profit of over Rs 2 crore to the Government. But with interference of some people’s representatives, the company was handed over to Maharashtra-based Balaji, which did not take any real interest in running the factory ad rather borrowed several crores of rupees from financial institutions and fattened the purses of people’s representatives and bureaucrats. Ruling party leaders took a lion’s share from the company at the cost of the Government.
The recent discussion on the company’s affairs in the State Assembly was nothing but a reflection of the conflict among ruling party representatives for getting their shares, say political observers.