order to make the unit self sufficient and ensure the supply of
quality cane to commensurate with the crushing capacity of our
plant which happens to be 2500 TCD, IGBMVSSK is going to under
take huge lift irrigation schemes accompanied by drip irrigation
system under the auspices of
Netafim Irrigation India Pvt. Ltd. Naturally all
this costs money.
spite of heavy odds IGBMVSSK has managed to commission the plant
on 25th December 2002. Even during the current season IGBMVSSK
has managed to produce quality sugar under 100 ICCUMSA.
today the factory is facing financial problems mainly because
the promised Government share contribution was not given to us
in time even though IGBMVSSK had collected promoters contribution
in full. Because of this IDBI (Industrial Development Bank of
India) did not release the last installment of its promised Term
Loan. This, as was expected resulted in delaying the supply of
machinery with the result IGBMVSSK was not able to commission
the plant on 1st of November 2002 as planed. By the time IGBMVSSK managed to clear the machinery suppliers dues it was end of
unavoidable delay in commissioning the plant as per schedule resulted
in causing multiple problems at various levels resulting in huge
losses. To begin with it resulted in seriously disturbing our
Harvesting & Transport arrangement. All the contractors with whom
IGBMVSSK had singed agreements by paying advances in the neighbourhood
of Rs. 4.50 Crores, (taken from State Bank Of India as a special
case) joined nearby sugar factories. The neighbouring sugar factories
who used IGBMVSSK machinery without investing a rupee did not
even care to recover IGBMVSSK dues as was their moral responsibility,
but went ahead and signed new agreements under false names and
did not return the harvesting and transport machinery when IGBMVSSK managed to commission the plant with the great difficulties
on 25 December 2002. Thus, IGBMVSSK's dream of crushing nearly
three lakh tones of sugar cane during the trial season with 11.50
% recovery was shattered and IGBMVSSK was forced to close the
plant after crushing merely 95,000 tones of cane at 10.83 % recovery.
was expected, this resulted in causing irreparable damages to
the Factory :-
due to under crushing to the extent of 2 Lakh tons of cane.
due to poor recovery per ton of cane by 0.75%.
due to non - recovery of advances given to the Harvesting
& Transport contractors. (Rs. 4.5 crores and interest thereof).
of insufficient crushing IGBMVSSK was not able to pay IDBI
installments and interest.
happened during the trial season was to repeat this season also
due to insufficient Harvesting & Transport arrangement. Because
IGBMVSSK became defaulters of the State Bank Of India, they refused
to refinance us. So IGBMVSSK approached District Central Co-operative
Bank, Kolhapur for obtaining Rs. 5.00 crores which was IGBMVSSK's
minimum requirement of harvesting & transport of four lakh tones
of cane required for the current season. Here again, the Bank
in the first place sanctioned only Rs. 3.00 crores as against
the genuine requirement of Rs. 5.00 crores and handed over the
sanctioned amount so late that by the time IGBMVSSK approached
the Harvesting & Transport contractors, all the experienced and
trusted ones had signed the contracts with other sugar factories.
Naturally, IGBMVSSK had to be satisfied with second and third
grade contractors. This again has created problems with the harvesting
and transport programme.
make bad things worse the neighbouring sugar factories declared
the Rs. 750/- per M.T. as first advance for sugar cane during
last season and going a step further this year they have declared
Rs. 800/- per M.T. as first advance going against the directives
of the financing institutions. Thus an economically unhealthy
price war for obtaining cane has started in the Kolhapur region.
Due to white folly a disease on sugar cane the entire area of
the factory is affected and because of this the yield reduced
by about fifty percent and sugar recovery reduced by 2 to 3% .
Under the circumstances the availability of sugar cane came down
and an unhealthy competition has started. IGBMVSSK has fallen
victim to this cut throat competition. Under the circumstances
IGBMVSSK too is forced to pay similar cane price for its survival.
of the five precious months of crushing season, IGBMVSSK lost
two months. Thus, IGBMVSSK was forced to shut down for this season
due to unavailability of funds.
above are some of the reasons responsible for the problems IGBMVSSK is facing today. A beautiful project which has put a feather
into the cap of all the women of the world is on the verge of
collapse and likely to become a sick unit unless some well-meaning
people and organizations of the world, take some urgent measures
to provide the factory with immediate financial relief and save
it from a otherwise certain death.
factory's survival is certain to bring about a socio economic
revolution in the much neglected part of the country. IGBMVSSK
also proposes to undertake health oriented programs, schools and
other activities for the overall development of women and children
of the region.
we the women of the IGBMVSSK extend this urgent appeal to the
people of the world to come forward and help this unique project
and enable us women to accomplish our objectives.
IGBMVSSK takes this opportunity to invite all those who are interested
in seeing what IGBMVSSK has already done at the site and what
IGBMVSSK proposes to do in the future to visit us at Tambale,