Uddhav Thackeray cancels Rs 380 crore sugar mills’ loan guarantee given by Fadnavis govt

In just six days after coming to power, Uddhav Thackeray-led Maha Vikas Aghadi government has cancelled guarantee worth Rs 380 crore given by Devendra Fadnavis government to sugar co-op mills promoted by BJP leaders and those migrated from Congress-NCP. The guarantee granted by the Devendra Fadnavis government had enabled mills to get loans.

The Devendra Fadnavis government had put up five conditions for the sugar mills for providing loan gurantee, which are that the condition were that these mills should have positive net worth; these mills should not have ny non-performing assets or liabilities of the government and NCDC should accept the loan amount as part of the working capital, reported Hindustan Times.

The spectre of rollback of large scale infrastructure projects worth Rs 2 lakh crore is looming over Maharashtra which may be a redux of Andhra Pradesh and in the eventuality also cause grave damage to the already faltering Indian economy's growth.

While the new Maharashtra Chief Minister Uddhav Thackeray has indicated a review of projects initiated by the previous government led by Devendra Fadnavis, the BJP is now raking up the issue and insinuating collateral issues.

(Inputs from Sanjay Jog and Agencies)

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