An ethanol plant to be set up in Chodavaram

Anakapalli: A proposal is made to set up an ethanol plant in Chodavaram Cooperative Sugar Factory located at Govada to ensure survival of the factory, said Industries and IT Minister Gudivada Amarnath.

Holding a review meeting with Government Whip Karanam Dharmasri, Anakapalli District Collector Ravi Subhash Pattanshetti and Sugar Factory MD VS Naidu here on Thursday, the minister opined that the ethanol plant would become a lifeline for Govada Sugar Factory.

After discussing with various groups, the minister assured that steps would be taken towards making the plant self-reliant and the YSRCP government would extend its support to strengthen the factory and regain its lost glory.

Speaking to the media, the minister said after YS Jagan Mohan Reddy became Chief Minister, about Rs.85 crore of working capital was invested in Govada Sugar Factory. He stated that Rs.7 crore has to be paid to the farmers, as well as another Rs.7 crore towards employees' salaries and maintenance.

Amarnath said issues pertaining to the factory were brought to the notice of the Chief Minister, who directed him to clear the dues at the earliest.

Further, the Industries Minister mentioned that 2.2 lakh tonnes of sugarcane crushing has been carried out in the factory this season. Amarnath stated that the repairs and maintenance of crushing machinery in the factory are costing a lot. He informed that an audit regarding these expenses has to be maintained to avoid allegations.

He expressed concern that the factory which used to produce 5 lakh tonnes of sugar annually has now reduced to two lakh tonnes of production. Apart from an increase in production cost, the survival of the sugar factory has become challenging due to fluctuating sugar prices in the national and international markets.

The minister added that the government would guarantee necessary financial transactions for the establishment of the plant.

Sharing his views, Government Whip Karanam Dharmasri said the sugar factories in the state performed well during the tenure of YS Rajasekhara Reddy.

YS Jagan Mohan Reddy’s government would extend support to the workers, employees and farmers of the factory. The YSRCP government was preparing an action plan to bring back the glory to the factory, he added.