Friday, 8 June 2012

Nitin Gadkari’s Dubious Businesses

UMRED AGRO COMPLEX
Ø      Can you believe Nitin Gadkari was Director in UMRED AGRO COMPLEX LIMITED 2009-10 – It was Processing Oilseeds for Cargill – American Agro Multinational – but He Opposed Walmart for Indian Farmers?
Ø      Can you believe even more shocking Umred Agro Complex – on turnover of Rs.18 crores made cumulative losses of Rs. 15 crores?
Ø      Can you believe Nitin Gadkari wanted to be re-elected as Director of Umred Agro Complex September, 2010 at 4.00 p.m but presumably LOST. He was not in the list of Directors.
       ANNUAL REPORT 2009-2Q1Q Annual Report
According to the Individual - Audited financial statement for the Year of 2011, total net operating revenues increased with 341.15%, from INR 21.82 tens of millions to INR 96.26 tens of millions. Operating Results increased from INR -1.83 tens of millions to INR 2.58 tens of millions. The results of the period increased 358.33% reaching INR 0.55 tens of millions at the end of the period against INR 0.12 tens of millions last year. Return on equity (Net income/Total equity) went from 0.96% to 24.55%, the Return On Asset (Net income / Total Asset) went from 0.54% to 7.59% and the Net Profit Margin (Net Income/Net Sales) went from 0.55% to 0.57% when compared to the same period of last year. The Debt to Equity Ratio (Total Liabilities/Equity) was 323.66% compared to 175.60% of last year. Finally, the Current Ratio (Current Assets/Current Liabilities) went from 1.23 to 1.05 when compared to the previous year.
Ø      After Nitin Gadkari was Thrown Out Company Turnover increased 341.15%, in just a year.
Purti Power & Sugar Ltd
Nitin Gadkari started his Sugar Factory in No sugar region –
All over Nagpur just 400 hectares area was planted and there were already 2-3 sugar mills in district. Minimum Sugarcane area required for just one Sugar Mill is 5000 hectares.
Ø      He acquired 250 acres from poor farmers cheaply when for 2500tpd capacity just 10 acres is sufficient. (Phagwara Mill Operates 4500tpd Sugar Mill on 10 acres land.)
Ø      The Case Study exposes his SMARTNESS – Sugarcane was brought from far of places – 6 hours to 12 hours trucking.
Ravinder Singh
June07, 2012
PURTI CO CO-OPERATIVE SUGAR MILL LTD. – A Case Study
M/s Purti sugar mill is situated at Khursapar (Bela) village near about 60 KM from Nagpur at national highway (Nagpur-Chandrapur) in Umred Taluka. This complex has been started within the leadership of Shri. Nitinji Gadkari, Chairman, who had laid the foundation stone of this multiproduct complex, which in the years to come would be the ideal example for whole Indian sugar industry sector. This multiproduct complex is spread over 250 Acres and consist of the following
• Sugar complex -capacity 2500 TPD/day (tons
per day)
• Distillery complex- capacity Sprit– 45,000 KLPD
(kilo liters per day) Ethanol– 1,20,000 KLPD
• Co-generation complex( capacity 220 MW)
• Bio-disel complex capacity (3000 liters/day)
• Bio-composting unit
Sugar Complex
The sugar industry began its crushing operation in 2002 with a capacity of 2500 TPD. of cane per day. But eventually operating a sugar factory in an area where small number of farmers are planting sugar cane which is insufficient to assure the operation of the sugar factory would not have been commercially viable.
This year the restriction of the command area has been removed by the government which in turns helps the industry to procured the sugarcane from outside the command area.
In this region water table is very low therefore water scarcity problem is very high as compare to other sugarcane growing region. This sugar factory has an enormous importance for the surrounding community.
Being located in the rural area, it provides employment opportunity and increases secondary business in the area. During the harvesting season, the cane is taken to the mill mostly by tractors (single & doubled trolley), bullock cart, and trucks. This year, most of the sugar cane came from the nearby areas like Wardha, Nanded, Selu, which approximately takes 6 to 8 hrs, while in case of Madhya Pradesh it takes more than 12 to 15 hrs.
Gadkari's Purti sugar mills to expand cane crushing capacity
Vishwanath Kulkarni
Devada (Maharashtra), Nov. 15:
The BJP President, Mr Nitin Gadkari-led Purti Group plans to increase crushing capacity of its three sugar mills by 2,000 tonnes crushed per day (tcd) to 8,500 tcd next year. The company owns three sugar factories in the Vidarbha region of Maharashtra and plans to invest about Rs 100 crore in expanding sugar capacities.
Besides, it plans to set up a 20 MW bagasse/bio-mass based power plant at the Waingang Sugar and Power Ltd at Devada in Bhandara district with an investment of Rs 115 crore by 2013.
The Wainganga factory, acquired through public auction for Rs 14.1 crore last year, was restarted on Tuesday in the presence of Ms Sushma Swaraj, Leader of the Opposition in the Lok Sabha, and the Chattisgarh Chief Minister, Mr Raman Singh.
The company plans to crush about 2 lakh tonnes of cane and produce about 20,000 tonnes of sugar in the first year of operations this year.
Inaugurating the crushing, Mr Gadkari told a farmers' rally at Devada that his firm was targeting the creation of some 40,000 rural jobs in the Vidarbha region next year through the company's expansion in bio-mass and sugar production.
The Purti Group, which operates four bio-mass power units in Vidarbha with a capacity of 60 MW, plans to double it to 125 MW by 2013.
The Group, with interest in sugar, power and solar sectors, recorded a turnover of Rs 330 crore and a profit of Rs 12 crore in the year-ended March 2011, said Mr Sudir Dive, Managing Director of Purti's power and sugar business. The company is targeting a revenue of Rs 500 crore for the current fiscal and Rs 1,000 by 2015, Mr Dive said.
Purti's sugar assets are valued at Rs 650 crore, while its debts stand at Rs 450 crore, he added.
Addressing the rally, Ms Swaraj blamed the faulty policies of the UPA government for the rise in inflation. Issues such as rising inflation and inadequate support price to farmers will be raised in the forthcoming winter session of Parliament, she said
Sugarcane growers cry foul over support price
TNN Jan 9, 2012,
WARDHA: Even if the state government has declared Rs 1,800 and Rs 2,050 support price for sugarcane growers in Vidarbha, Marathwada and western Maharashtra regions respectively, the farmers in this region are still waiting for this price.
In Jamini, Mahatma Sugar Factory (MSF) is offering Rs 1,500 per quintal for sugarcane. With this, the factory is earning Rs 12 crore while the farmers are bearing huge losses. The estimated sugarcane crop in Wardha district is 4 lakh tonne, and if the whole crop is sold for Rs 1,500 per quintal which is Rs 300 less than the declared price, the total loss to farmers will reach a whopping Rs 12 crore.
In October, Raju Shetty led an agitation in western Maharashtra demanding minimum support price for sugarcane. The Maharashtra government had agreed and announced Rs 1,800 MSP for sugarcane in Vidarbha and Marathwada and Rs 2,050 in western Maharashtra.
Farmer leader Vijay Jawandhiya said, "Though I am not sure whether a government GR has been issued or not, I know an agreement was reached between the agitators and the government."
MSF managing director denied the charges while accepting that the factory was paying only Rs 1,500 per quintal. He said, "We have to pay carrying and other charges as well, which cost Rs 500."
Damodar Jhade, a farmer, said, "I am getting Rs 1,500. However, the purchasers convince us that other charges paid by them should be added to the sugarcane price. "This is a different trend than western Maharashtra," he said.

: "Ravinder Singh"

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