Date:29/07/2004 URL: http://www.thehindubusinessline.com/2004/07/29/stories/2004072902351900.htm

Back House committee to probe Nizam Sugar Factory deal

Our Bureau

The Government has received complaints that DPM is violating the provisions of the joint venture agreement.

Hyderabad , July 28

A committee of the State Assembly will probe the sale of 51 per cent of shares in the public sector Nizam Sugar Factory unit at Bodhan in Nizamabad district to Delta Paper Mills (DPM).

The Minister for Tourism and Sugar, Dr J. Geeta Reddy, agreed for the House committee probe demanded by the members during an hour-long discussion in the Assembly on Wednesday.

Mr C. Narsi Reddy of the Congress and ten other legislators raised the issue in the Assembly alleging that there were several irregularities in the sale. They said DPM was also misusing the assets of Bodhan Sugar Factory that was sold to the company for a song.

The Tourism Minister informed the House that the Government had received complaints that DPM was violating the provisions of the joint venture agreement.

She, however, said that DPM had been the highest bidder when the Government called for open tenders for the purchase of a majority stake in the loss-making sugar factory.

Dr Reddy offered to submit all information sought by the members to the Assembly Speaker, but later agreed to the persistent demand of the legislators for a House panel probe into the issue.

Bill on borewells: A Bill to amend the Andhra Pradesh Water, Land and Trees Act, 2002 so as to ensure that farmers do not incur financial loss in case of failure of borewells was introduced in the State Assembly on Wednesday by the Minister for Rural Development, Rural Water Supply and Employment Generation, Mr D. Srinivas.

Introducing the Bill, the Minister said that it had come to the notice of the Government that in many cases the farmers were incurring huge losses on account of the failure of new borewells dug by them.

Therefore, it has been decided to make it mandatory on the part of the rig owners to obtain a feasibility certificate regarding availability of water from the Ground Water Department or from the experts registered with the department before drilling wells for irrigation purposes.

]It has also been decided to provide insurance cover for drilling borewells in agricultural lands. The Bill seeks to give effect to these decisions.