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Corporate magnates like Bajaj, Birla, Modi group owe Indian sugarcane farmers Rs 5000 crores

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By NewsGram Staff Writer

The leading names of the sugar industry have left the UP government in a spot of bother.

Sugar mills owned by nine top notch companies such as Bajaj, Birla, Modi group and the late liquor baron Ponty Chadda-led ‘Wave group’ account for over  Rs 5000 crores, more than half of the total outstanding cane arrears in the country.

The reports of the cane development department revealed by an English daily, show that these sugar biggies are the country’s biggest laggards in making cane payments.

After buying cane in huge quantity from farmers, the private mills have come to default on a payment of over Rs 5100 crores, reported The Times of India.

Bajaj alone is defaulting on a payment of Rs 2100 crores, while Birla is yet to pay Rs 520 crores. Mawana group which has three mills is defaulting on a payment of Rs 611 crores, while the Modi group owes around Rs 460 crores to the farmers. The Yadu group, owned by mafia turned politician, DP Yadav, is defaulting to the tune of Rs 62 crores.

Out of a total of 103, 40 mills belonging to  these companies are defaulting massively and have left the poor cane growers in a state of complete loss.

“The department would be considering action against the defaulters very soon”, said UP cane commissioner Subhash Chandra Sharma.

Earlier a recent high court order had directed the state government to force 75 per cent of the total cane dues paid to the farmers by July 15.

An action report is required to be filed by the cane department by July 28.

Talking about the steps undertaken to bring the defaulters to book Sharma said, “The department is taking all possible steps including initiating action like registering FIRs and issuing recovery challans against the millers.”

“The payment is being done but very slowly. Not surprisingly, an arrear running into thousands of crores would be carried into the next crushing season which would start by October end”, Sharma said while commenting on the progress made thus far.

According to recent figures from the Centre’s directorate of sugar shows that nationally UP accounts for the highest cane arrears while Maharashtra comes a close second.

The lower arrears for Maharashtra in comparison to UP are attributed to a lesser compensation for farmers.

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Make in India Most Beneficial For Mobile Manufacturers

How mobile manufacturing made the most of 'Make in India'

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Mobile manufacturers
India is today the second-largest mobile phone manufacturer in the world after China. Pixabay

From just two mobile phone manufacturing units in 2014 to 268 mobile handset and accessories manufacturing units in 2019 which has led to 95 per cent of mobile phones sold in the country being produced domestically, the star in India’s “Make in India” story is indeed shining.

In fact, India is today the second-largest mobile phone manufacturer in the world after China. “India has achieved tremendous success in mobile phone and component manufacturing in the last four years with more than 95 per cent of domestic consumption now being produced in India,” Pankaj Mohindroo, Chairman, India Cellular and Electronics Association (ICEA), told IANS.

“Our domestic market viz-a-viz domestic manufacturing is saturated and we have set our sights on a target of Rs 7.7 lakh crore of exports by 2025,” he added. According to a survey conducted by mobile industry body ICEA, the 268 mobile handset and accessories manufacturing units employ about 6.7 lakh people.

Mobile manufacturer
In India, 268 mobile handset and accessories manufacturing units employ about 6.7 lakh people. Pixabay

So today the phones that most Indians hold in their hands are made in India, thanks mainly to schemes such as Modified Special Incentive Package Scheme (M-SIPS) to provide financial incentives across the ESDM value chain to compensate for cost disability in manufacturing and Electronics Manufacturing Clusters (EMC).

Launched in 2012, the M-SIPS, provides capital subsidy of 25 per cent for electronics industry located in non-SEZ (Special Economic Zone) areas and 20 per cent for those in SEZ areas.

The Electronics Manufacturing Clusters (EMC) scheme, which was also launched in 2012, encouraged entities, including state governments, to provide good quality infrastructure within a cluster.

mobile manufacturer
Uttar Pradesh has emerged as the new hub of mobile manufacturing in the country over the past few years. Pixabay

Under the scheme, 50 per cent of the project cost for Greenfield Electronics Manufacturing Clusters and 75 per cent for Brownfield Electronics Manufacturing Clusters is given as grant. Due to the focus on “Make in India” and “Digital India” programmes, Uttar Pradesh has emerged as the new hub of mobile manufacturing in the country over the past few years.

In July 2018, Samsung launched the world’s largest mobile factory in Noida. The new facility was set up with the aim of doubling its capacity for mobile phones in Noida from 68 million units a year to 120 million units a year, in a phase-wise expansion to be completed by 2020.

Besides Samsung, most Chinese smartphone makers which now dominate the Indian market – Xiaomi, Oppo and Vivo — also produce their phones in the country. Apple has already started the assembling of iPhone 7 at its supplier Wistron’s facility in Bengaluru. Production of cellular mobile handsets in volume terms reached 225 million units in 2017-18, as compared to production of 60 million units in 2014-15.

Also Read: Why PM Modi Acted Now on Kashmir?

The National Policy on Electronics 2019 has set the aim of promoting domestic manufacturing and export in the entire value-chain of ESDM (Electronics System Design and Manufacturing) for economic development to achieve a turnover of Rs 26 lakh crore by 2025. This will include targeted production of one billion mobile handsets by 2025, valued at Rs 13 lakh crore, including 600 million mobile handsets valued at Rs 7 lakh crore for export.

India currently has over 450 million smartphone users. The number of smartphone users in the country is expected to reach 859 million by 2022, according to an ASSOCHAM-PwC joint study. (IANS)