Mumbai, Mar 22: Purchase tax exemption and export subsidy, hitherto applicable to co-operative sugar factories, would be extended to sugar factories in the private sector, Maharashtra finance minister Jayant Patil said in the Assembly on Saturday. Raising the demand during debate on the Maharashtra Tax Law (amendment) Act, 2003, which was passed by voice vote by the lower house, Gopinath Munde (BJP) said uniform policy should be applied to the entire sugar industry instead of discriminating between the private and co-operative sugar factories.
Noting that Maharshtra had 21 private sugar factories, Munde said the Centre's sugar policy did not discriminate between the private and co-operative sector and the state government should apply similar standards to all sugar factories.

Accepting the demand, Patil said the private sugar factories could now avail themselves of export subsidy of Rs 100 per tonne.
The minister said the payment Rs 115 crore purchase tax during the current fiscal would be waived.
"However, the pending arrears amounting to Rs 250 crore will not be waived", he said. Bureau Report