Govt okay with new Mayuge sugar factory
Dec 24, 2007
THE establishment of Mayuge Sugar Industry near Kakira Sugar Works did not contravene any policy, the gender state minister has said.
By Joel Ogwang
THE establishment of Mayuge Sugar Industry near Kakira Sugar Works did not contravene any policy, the gender state minister has said.
Rukia Nakadama said the Government does not have a policy on localisation of industries and supported new investments.
“I consulted the Prime Minister and he said the Government lacked a policy on localisation of industries. That is the official government position.â€
A conflict erupted between the two companies after Kakira accused Mayuge of breaching an inter-ministerial agreement blocking the establishment of sugar factory within a radius of 35km of an existing one. The two firms are 16km apart.
However, the High Court in Jinja recently threw out Kakira’s petition, ruling that it was scared of competition.
Nakadama, who was part of the Busoga MPs visiting the proposed plant site for Mayuge Sugar Industry in Lugolole village recently, urged the two companies to operate harmoniously.
Luuka county MP Meddie Mulumba said the Mayuge factory would be one of the biggest investments in the region.
“If we want Busoga to develop, then we must support new investments. We support both sugar factories and any other potential investors.â€
The company director, Kamalesh Maheshwari, said the firm would crush 500 tonnes of sugarcane daily and create 500 jobs for residents in the first year.
“We will expand to 1, 500 tonnes in three years.â€
THE establishment of Mayuge Sugar Industry near Kakira Sugar Works did not contravene any policy, the gender state minister has said.
Rukia Nakadama said the Government does not have a policy on localisation of industries and supported new investments.
“I consulted the Prime Minister and he said the Government lacked a policy on localisation of industries. That is the official government position.â€
A conflict erupted between the two companies after Kakira accused Mayuge of breaching an inter-ministerial agreement blocking the establishment of sugar factory within a radius of 35km of an existing one. The two firms are 16km apart.
However, the High Court in Jinja recently threw out Kakira’s petition, ruling that it was scared of competition.
Nakadama, who was part of the Busoga MPs visiting the proposed plant site for Mayuge Sugar Industry in Lugolole village recently, urged the two companies to operate harmoniously.
Luuka county MP Meddie Mulumba said the Mayuge factory would be one of the biggest investments in the region.
“If we want Busoga to develop, then we must support new investments. We support both sugar factories and any other potential investors.â€
The company director, Kamalesh Maheshwari, said the firm would crush 500 tonnes of sugarcane daily and create 500 jobs for residents in the first year.
“We will expand to 1, 500 tonnes in three years.â€