Mumbai, Maharashtra: The Maharashtra cabinet on Tuesday cleared a proposal for an ₹18 crore loan from the National Cooperative Development Corporation (NCDC) for Shree Nilkantheshwar Shetkari Sahakari Sakhar Karkhana in Latur, whose chairman is BJP MLA Abhimanyu Pawar, according to a report by the Times of India.
Approval despite departmental objections
The loan was approved although the state's sugar commissioner and the finance department reportedly advised against the move, saying the cooperative did not meet the conditions set out in the state's policy. The factory, which had been closed for 15 years, was said to be under liquidation before being revived last year, according to the report.
Officials cited in the report told the cabinet that the factory had accumulated significant losses, and had already exhausted its capacity to raise external loans. The sugar commissioner flagged cumulative losses of ₹108.9 crore and said the unit had utilised its borrowing limit, making it ineligible under the policy framed on June 25, 2026.
Past government assistance and loan history
The factory has earlier received state assistance and external financing. Documents and figures referred to in the reporting indicate prior government support:
- ₹50 crore in government assistance in 2023
- ₹22.9 crore NCDC loan in 2024
- Now, an additional ₹18 crore cleared by the cabinet
| Year | Assistance / Loan |
|---|---|
| 2023 | ₹50 crore (government assistance) |
| 2024 | ₹22.9 crore (NCDC loan) |
| 2026 | ₹18 crore (NCDC loan cleared by cabinet) |
According to the report, the finance department cautioned that approving this proposal could prompt similar requests from other sugar factories, increasing the state's contingent liabilities and fiscal burden.
Questions raised inside the cabinet
Several ministers reportedly questioned why this factory was being given an exception when others were denied similar relief. The Times of India said the cabinet press statement described the clearance as a "special case" — a term that has prompted scrutiny given the factory's financial track record.
“This is not a special case. Other sugar factories have been given loans worth ₹300-400 crore. This is a small sum,”
The quotation above was attributed to Abhimanyu Pawar in the report, who denied that the cabinet treated the loan as a special case. Pawar said the factory had been closed and under liquidation for 15 years and that he had helped revive it, according to the report.
How NCDC loans are processed
NCDC loan proposals are routed through the state, which provides a guarantee for the sum, the report noted. That means state endorsement is a prerequisite for the cooperative to access central funding, and clearance by the cabinet effectively green-lights the guarantee.
Officials cited in the report underlined that the plant had received substantial prior assistance and was still servicing earlier loans — factors they said should have prevented fresh funding under the existing policy framework.
Implications and possible reactions
The clearance is likely to draw scrutiny from opposition parties and policy watchdogs concerned about selective exceptions and fiscal prudence. The finance department’s objection, as reported, signals a tension between political decisions and administrative safeguards designed to limit state financial exposure.
At a sectoral level, sugar cooperatives have historically relied on a mix of government support and external borrowing. The reported discrepancy between policy eligibility criteria and the cabinet's decision in this case could prompt calls for clearer, stricter adherence to norms when state guarantees for NCDC loans are being considered.
Officials and departments named in the reporting did not provide further comment in the material referenced. The cabinet order, the sugar commissioner’s note and the finance department’s objections were cited in the Times of India report as the basis for these details.
— Sameer Joshi, Maharashtra correspondent
