Mumbai: The Maharashtra cabinet has cleared a proposal for a loan of Rs 18 crore from the National Cooperative Development Corporation (NCDC) for Shree Nilkantheshwar Shetkari Sahakari Sakhar Karkhana in Latur, whose chairman is BJP MLA Abhimanyu Pawar, as a “special case”.The proposal was cleared despite objections raised by the state sugar commissioner and finance department, which pointed out that the cooperative sugar factory did not fulfil conditions laid down in the state’s policy, TOI has learnt. Several ministers at the cabinet meeting also questioned the clearance, asking why other factories were not receiving similar exceptions, sources said.When contacted, Pawar, a close associate of chief minister Devendra Fadnavis, denied that the cabinet cleared the loan proposal as a special case, even though this was the term used in the government’s press statement.NCDC loan proposals are routed through the state, which provides a guarantee for the sum. In 2024, the factory had received an NCDC loan worth Rs 22.9 crore.TOI has learnt that the state sugar commissioner had informed the state cabinet that the factory was not eligible for an NCDC loan on several counts, according to the policy laid down on June 25, 2026. It had acquired cumulative losses worth Rs 108.9 crore and had exhausted its limit to raise external loans, he reportedly said. Also, it had received government assistance worth Rs 50 crore in 2023 and Rs 22.9 crore in 2024 and was still repaying those loans, the sugar commissioner said.The state finance department too reportedly said the factory was not eligible and the proposal should not be approved. It also said that other sugar factories would make the same demand and this would increase the financial burden on the state.Pawar told TOI: “This is not a special case. Other sugar factories have been given loans worth Rs 300-400 crore. This is a small sum.”He said that the factory had been closed for 15 years and was under liquidation and that he had managed to revive it last year. “The factory had received an NCDC loan in 2024 for expansion purposes. The loan proposal this year was for the repayment of loans owed to two cooperative banks. The factory also needs working capital and was classified as an NPA,” Pawar said.The Mahayuti government faces a debt of Rs 11 lakh crore, mainly the result of sops, including the state’s flagship Mukhya Mantri Majhi Laadki Bahin Yojana, which were announced before the 2024 assembly polls.
