Karnataka Assembly session: Mysugar fund misuse to be probed, says Minister Patil

The State government will order an investigation into the alleged misuse of over ₹100 crore released earlier for the development of Mysugar, informed Shivananda Patil, Minister for Sugar, Textiles and Agricultural Marketing, in the Legislative Council on Tuesday.

Replying to a question raised by Congress member Madhu G. Madegowda, the Minister said that after the present government assumed office, several initiatives were taken to revive Mysugar. “The sugar recovery rate, which was barely 3.5% earlier, has now increased to 8%. The co-generation power plant too was commissioned only after our government came to power,” he said.

Power generation

According to the Minister, the factory has generated 12.21 lakh units of electricity, of which 7.28 lakh units were utilised internally, while 4.93 lakh units were supplied to Chamundeshwari Electricity Supply Corporation (CESC). This earned the factory an income of ₹29.14 lakh at the rate of ₹5.91 per unit. “If the entire power generated is supplied to CESC, the revenue could touch ₹9.48 crore,” he explained.

The Minister further noted that the property tax liability of Mysugar’s Bengaluru administrative office stood at ₹6.50 crore. However, under the One-Time Settlement scheme, the company cleared dues by paying ₹2.04 crore, thereby saving ₹4.50 crore. Mysugar also owns 235.10 acres of land, a survey of which will be undertaken to identify and remove encroachments, he added.

PM Mitra Textile Park project

Responding to Congress member Jagadev Guttedar, Mr. Patil said the PM Mitra Textile Park project in Kalaburagi will be completed within the stipulated time.

Pointing out that the project will house industries covering the entire value chain — from yarn production to finished garments, the Minister said it is expected to generate around one lakh jobs. “The State Cabinet has approved the release of ₹390 crore for developing infrastructure facilities,” he said.

Besides, 1,000 acres of land across various survey numbers in Nadi Sinnoor and Kirangi villages of Kalaburagi taluk have been handed over to PM Mitra Park Karnataka Limited on a 99-year lease, he added.