The Uttar Pradesh Cupboard has authorised the proposal to confiscate Rs 1,000 crore from Bajaj Hindusthan’s energy plant within the state to pay cane farmers.

Appearing on its newly-enacted laws relating to the defaulting sugar mills, the Uttar Pradesh authorities has determined to confiscate energy funds of Rs1,000 crore as a result of Bajaj Hindusthan’s Lalitpur Energy plant from the Uttar Pradesh Energy Company (UPPCL) to clear the excellent sugarcane dues to farmers within the state. The UPPCL can pay the dues in two tranches of Rs 500 crore every, which might be transferred into the escrow account of the 14 Bajaj sugar mills, from the place it will be straight transferred to the farmers accounts.

The Uttar Pradesh Cupboard has authorised the proposal to confiscate Rs 1,000 crore from Bajaj Hindusthan’s energy plant within the state to pay cane farmers.Uttar Pradesh authorities had, in December, amended Part 17 of the Uttar Pradesh Sugarcane (Regulation of Provide and Buy) Act 1953, by means of introducing a sub-clause, which empowers the cane commissioner to get better the cane dues of errant mills by confiscating all of the receivables that any subsidiary or affiliate firm of those sugar mills would get from the any state authorities division or company.Talking to FE, an official within the UP sugarcane division stated that as a way to make the sooner clauses of the Act more practical and to make sure that farmers get their cane dues on time, the brand new clause has been added and will likely be invoked solely after exhausting the sooner provisions of recovering farmers’ dues. 

“The supply is that if a sugar firm doesn’t pay the value of sugarcane, it may be recovered from its subsidiaries. The laws was clearly introduced in with the specific motive of clearing the cane dues of Bajaj Hindusthan, which is the most important defaulter amongst mills yearly. The corporate nonetheless owes Rs1,500 crore to the farmers for cane bought by its mills throughout the 2020-21 crushing season,” stated the official, requesting amonymity.

“Below this clause, the receivables of the defaulter mill, unit or firm or any of its subsidiary or affiliate firms within the state, might be seized by the state authorities to clear the farmers’ cane dues,” the amended clause reads, including that the definition of firm, subsidiary firm and affiliate firm would be the identical as outlined within the Firm Act 2013.

Bajaj Hindusthan has two energy firms in Uttar Pradesh. Whereas the Lalitpur Energy Technology Firm is a 1980 MW thermal mission based mostly in Lalitpur, Bajaj Power Restricted operates 10 items of 45 MW every.UPPCL owes Rs2361.20 crore to Bajaj Hindusthan group for the electrical energy bought from Bajaj Hindusthan’s Lalitpur thermal mission. Out of this, it can launch Rs 1,000 crore in two instalments, which will likely be used to pay the cane worth excellent on Bajaj’s sugar mills.

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UP govt to confiscate Bajaj Hindusthan’s receivables to pay arrears to cane farmers