Ailing sugar co-op banks on its margdarshak: Shivraj Patil’s son

Speaking to The Indian Express, Shailesh Patil had said that he is a “businessman” in his own right and runs a sugar co-operative in Maharashtra. What he failed to add is that he is not officially associated with the factory in question — the Jai Jawan Jai Kisan co-operative sugar mill in the family’s home district of Latur, which also used to be Shivraj Patil’s parliamentary constituency. But that is just for the record.

For practically all purposes, Shailesh Patil is the chief patron, guide and lobbyist since early 2004 for the factory which is steeped in losses and debt, fighting hundreds of legal battles and is struggling to survive even as it makes grand expansion plans.

Factory officials and union leaders said that at present, his “connections” are badly needed in key areas which could help bail out the factory: secure a Rs 7-crore loan for modernisation, get permissions to set up a distillery to use the molasses and to generate about 3 MW of power on the premises.

The brainchild of the Home Minister, the factory was set up in 1984 when 5,000 farmers formed a co-operative and raised over Rs 1 crore while Rs 10 crore was borrowed from banks.

Once considered the biggest among Maharashtra’s old sugar co-operatives, it mostly had Shivraj Patil’s relatives or supporters running it. The factory, which can produce 2 lakh metric tonnes of sugar annually, had few worries in its initial years.

But neglect, mismanagement and lack of modernisation began hurting it in the late 1990s, the present management admits. As a result, workers started deserting it and today, the massive structure spread over 300 acres in Nalegaon village is a collection of leaking pipes, outdated boilers and shoddy godowns.

Production is limited and the last time full salaries were paid was in 2003. The account books reflect the sorry state. During 2002-03, it had an accumulated loss of Rs 15.4 crore. During 2006-07 it grew to 46.85 crore. Debt stands at Rs 30 crore.

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