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Cold storage operators seek waiver from state govt 

Post News Network
Updated: April 15th, 2020, 04:00 IST
in Business, Metro
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Bhubaneswar: The cold storage operators of the state, now under stress owing to disrupted operations amid lockdown, have sought several exemptions and waivers to help the sector to revive again.

Several cold storage operators have approached the Department of Agriculture and other officials seeking assistance. The Odisha Association of cold storage Operators also have written to Chief Minister Naveen Patnaik and others on the subject.

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In a communication to Patnaik, the association said, “Out of around 144 cold storages in the state of Odisha, merely 40 of them are in functional condition running at a capacity utilisation of around 25-40% of their potential. It would not be far off when they would become sick and become out of operation, if adequate support is not extended from the government, at the earliest.”

It also added, “Almost all the cold storages have become NPA in the books of accounts with the financing bankers and most of them are unable to protect their properties as banks are initiating recovery process for seizure of those cold storages and helpless promoters are not getting any support from any corners.”

The association, in their charter of demands, has asked to waive off the surcharges on several fronts, ease out banking pressures on them and also exempt the sector from late payment of electricity besides rationalisation of power tariffs.

It said, “Banks/ Financial Institutions may be directed not to take any steps for seizure/ auction of cold storages assets. Government may ease the financing constraints for cold storages with the banking bodies.”

The association in their letter to Patnaik also demanded rational charging of power supply during the lockdown.

“We request that necessary directions may be issued in instructing the power companies to support the nation and common man by bringing down the tariff to Allied Agricultural Activities category for electricity unit rates of cold storages,” it said.

Tags: Cold storageLockdown
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