New Mayuge sugar firm starts 2008
Dec 05, 2007
THE proposed Mayuge Sugar Industry Ltd is set to start operations sugar next year after overcoming a High Court injunction stopping its establishment. The High Court in Jinja this week dismissed an application by Kakira Sugar Works to block a competing company from doing business in its neighbourhoo
By Joel Ogwang
THE proposed Mayuge Sugar Industry Ltd is set to start operations sugar next year after overcoming a High Court injunction stopping its establishment.
The High Court in Jinja this week dismissed an application by Kakira Sugar Works to block a competing company from doing business in its neighbourhood
Kakira Sugar Works is a subsidiary of the Madhvani Group of Companies. The Mayuge factory is about 16 kilometres from Kakira.
Kakira attorneys argued that an inter-ministerial meeting on October 19 resolved that sugar and jaggery mills should not be established within a radius of 35 kilometres of existing ones.
They also feared that Mayuge Sugar, if allowed to operate, would encroach on Kakira Sugar out-growers, resident in Mayuge.
But the Jinja High Court judge Vincent Zehurikize said, “It is merely a fear that if the respondent factory goes into production, some of the out-growers will change to them.
“There was no reliable evidence to support such fears.â€
“I am inclined to agree with counsel for the respondent that if such a thing happened, then the remedy would be to sue those out-growers than granting an injunction in this respect.â€
However, Kamalesh Maheshwari, the Mayuge Sugar director, said the $10m (about sh17b) investment would, in its first year, crush 500 tonnes of sugarcane daily.
“We shall have more than 14 tractors, graders, excavators and other requirements to support 5,000 acres of out-growers’ land and 3,000 acres of its own land,†he said. Maheshwari pledged cooperation with Kakira Sugar Works.
“We shall never try to create any problem to them.
Addressing a press briefing at Sunset Hotel, Jinja, Maheshwari said the new investment would create employment to 500 locals.
Ikoba Tigawalana, the Mayuge LC5 chairman, said justice had been done.
He pledged total support for what he termed the first multi-billion investment in the district.
Tigawalana alleged that the eastern region was sabotaging the project.
“No one will stop this investment,†Tigawalana promised.
John Kasenge, the Mayuge resident district commissioner, said the Mayuge Sugar out-growers’ scheme was in line with the Government’s prosperity for all programme.
“It is a government policy for districts to attract investments.
“The project will not only benefit Mayuge, but also Jinja and Iganga.
“We must support it,†the commissioner told reporters.
THE proposed Mayuge Sugar Industry Ltd is set to start operations sugar next year after overcoming a High Court injunction stopping its establishment.
The High Court in Jinja this week dismissed an application by Kakira Sugar Works to block a competing company from doing business in its neighbourhood
Kakira Sugar Works is a subsidiary of the Madhvani Group of Companies. The Mayuge factory is about 16 kilometres from Kakira.
Kakira attorneys argued that an inter-ministerial meeting on October 19 resolved that sugar and jaggery mills should not be established within a radius of 35 kilometres of existing ones.
They also feared that Mayuge Sugar, if allowed to operate, would encroach on Kakira Sugar out-growers, resident in Mayuge.
But the Jinja High Court judge Vincent Zehurikize said, “It is merely a fear that if the respondent factory goes into production, some of the out-growers will change to them.
“There was no reliable evidence to support such fears.â€
“I am inclined to agree with counsel for the respondent that if such a thing happened, then the remedy would be to sue those out-growers than granting an injunction in this respect.â€
However, Kamalesh Maheshwari, the Mayuge Sugar director, said the $10m (about sh17b) investment would, in its first year, crush 500 tonnes of sugarcane daily.
“We shall have more than 14 tractors, graders, excavators and other requirements to support 5,000 acres of out-growers’ land and 3,000 acres of its own land,†he said. Maheshwari pledged cooperation with Kakira Sugar Works.
“We shall never try to create any problem to them.
Addressing a press briefing at Sunset Hotel, Jinja, Maheshwari said the new investment would create employment to 500 locals.
Ikoba Tigawalana, the Mayuge LC5 chairman, said justice had been done.
He pledged total support for what he termed the first multi-billion investment in the district.
Tigawalana alleged that the eastern region was sabotaging the project.
“No one will stop this investment,†Tigawalana promised.
John Kasenge, the Mayuge resident district commissioner, said the Mayuge Sugar out-growers’ scheme was in line with the Government’s prosperity for all programme.
“It is a government policy for districts to attract investments.
“The project will not only benefit Mayuge, but also Jinja and Iganga.
“We must support it,†the commissioner told reporters.