The State Government in principle has taken a decision to take over three Nizam Sugar factories functioning in three districts, according to Ministers P Sudershan Reddy and V Sunitha Lakshma Reddy. The government will take a decision after a cabinet approval on giving Rs 234 crore to the management for handing over all the three factories in Nizamabad, Medak and Karimnagar districts.
Addressing a press conference at Secretariat here they said that after a Cabinet Sub Committee meeting it was decided to run these privatized companies on their own. They alleged that the then Chief Minister N Chandrababu Naidu, followed by a World Bank diktat, sold them for Rs 67 crores to private company. The government will now have 51 per cent stake in the factories and have to give about Rs 234 crores to the management for the claim. However, the government is yet finalise its decision on financial matters, they said adding that auditing, legal and related issues will be taken care of.
However the Congress party soon after coming to power in 2004 has decided to take over and constituted a committee. The committee recommended the government to take over the Nizam Sugar Factories. Later on legal hurdles and other administrative reasons prevented them from doing so, they said. On the directive of Chief Minister N Kiran Kumar Reddy a Cabinet Sub Committee which met for three times has taken a decision in this regard, they said.(NSS)