Uttarakhand to abolish 2 pc VAT on sugar

Dehradun, Aug 1 (PTI) The Uttarakhand government today announced abolishing 2 per cent VAT on sugar in the state and said the loan given to government sugarmills will be converted to equities. Chief Minister Vijay Bahuguna directed the officials concerned to initiate necessary action for abolition of 2 percent VAT on sugar, said an official statement here. Bahuguna also asked the officials to take steps to convert the loan amount and interest on it given to the government sugarmills in equities. He was chairing a review meeting of sugarcane development and sugar industry department here. There is a loan of Rs 271.67 cr and interest of Rs 227.21 crore due on government sugar mills. The Chief Minister said the conversion of loan and interest on it to equities would not only increase the assets of the government but it would also help the sugarmills to get removed from the burden of the loan. Expressing concern over the pending dues of sugarcane farmers on sugarmills, Bahuguna asked the officials to prepare an action plan and produce it before the cabinet meeting on August 17 so that the process of payment of dues could be expedited. He also asked officials to launch efforts to modernise and revive the sick sugarmills. However, he said if the revival of sick sugarmills is not possible then the possibility of running them under PPP mode should be explored keeping in view the interests of their employees. Bahuguna also directed the officials to set up co-generation facility of 12 MW capacity each in Bajpur and Kichchha sugarmills where nearly Rs 200 crore investment is expected. He said the co-genration would also provide 24 MW of electricity to the power-starved state. He said similar possibilities would also be explored in other sugarmills, too, in future.