Farmers request CM to takeover Nizam Sugars

Leaders of the Lok Satta and other political parties and Federation of Independent Farmers' Associations (FIFA) today (Friday, March 1) requested the Chief Minister of Andhra Pradesh N. Kiran Kumar Reddy to undo the privatization of Nizam Sugars.

The following is the text of the representation made by the leaders to the CM at secretariat. The leaders included Dr.Jayaprakash Narayan (Lok Satta and FIFA), M. Kodanda Reddy, G.Chinna Reddy (Congress), Padma Devender Reddy (TRS), Nagireddy (YCP), Malla Reddy (BJP), Ravula Venkaiah, Pasya Padma (CPI), Janaki Ram (RSP), Kotaiah, DV Krishna (CPI-ML-ND) Chikkudu Prabhakar, M. Appi Reddy, V. Nagireddy (Nizam Sugars Porata Samithi), Ajay, Narsareddy, Rajareddy (Farmers, Bodhan), M.V.Srinivasa Reddy (APCC Kisan Khet Mazdoor Congress), P.Bhaskara Rao (FIFA), Katari Srinivasa Rao (Lok Satta Party).

Sri N. Kiran Kumar Reddy
Hon'ble Chief Minister
Government of Andhra Pradesh
Hyderabad

Permit us to bring to your attention that a round table of different political parties and farmers' organizations held at Sundaraiah Vignan Bhavan here today unanimously resolved that the Government annul the privatization of the four units of Nizam Sugars Limited as recommended by the House Committee and endorsed by the Advocate General and the Andhra Pradesh High Court.

The Government parted with NSF assets worth Rs.500 crore for a paltry Rs.67 crore and offered concessions worth about Rs.300 crore to Delta Paper Mills (DPM), besides paying Rs.12 crore as VRS compensation to employees in 2002. The House Committee appointed in 2004 pointed out that NSL a joint venture agreement with DPM was deceitful, irregular and defective. Moreover, DPM violated the terms of the agreement by failing to pay the statutory minimum price to farmers within the stipulated time frame. There was total lack of transparency in the entire transaction, said the House Committee.

The Advocate General too opined that undue favour was shown to DPM resulting in loss to the State and the Government can annul the transaction.

In its verdict on a writ petition filed by NSL cane growers and workers, the High Court referred to the Advocate General's assurance that the Government would take a final decision within six weeks on the House Committee report and observed: "It is indeed very sad that the most valuable public sector sugar factories in Telangana are allowed to be in the illegal possession of the private party."

We would like to point out that the Government who is the custodian of public property has not taken any action so far to annul the joint venture agreement.

We, therefore, strongly urge the State Government to pass orders for the cancellation of the joint venture agreement and takeover all the units of Nizam Sugar Ltd. which were handed over to Delta Paper Mills Ltd. in 2002. Eventually, the Government can hand over the units to farmers if they form a producers’ company. In any case, the Government needs to act immediately to protect the interests of farmers.

Yours sincerely,