According to the promoter of the Kadva-Goda Sugar Industries Limited, Prahlad Patil-Karad, the public limited company has been given the green signal by the Central and State governments and will begin operations from the 2000-2001 cane crushing season. Karad, former chairman of the Niphad Sugar Cooperative, feels that floating a private company was the ``need of the hour in view of the changing times'' and the abundant sugarcane stock available in the well-irrigated region of Niphad.

The plant will be located in the Pimpalgaon-Nipani-Talwada area and will have a capacity of crushing 1,500 tonnes of sugarcane daily, Karad added. Setting up the plant is expected to cost between Rs 18-20 crore for which 10,000 shares, each having a face value of Rs 5,000, will beissued.

Shareholders will be charged Rs 200 extra for miscellaneous expenditure. Preference will be given to sugarcane growers from the region, Karad added.

The Niphad region grows about 11.5 lakh tonnes of sugarcane of which six to 6.5 lakh tonnes is crushed by the local Niphad cooperative. The surplus cane -- to the tune of 2-2.5 lakh tonnes in each season -- for which buyers have to be found in other areas, will be used by the new company. Remunerative prices will be paid to cultivators.

The company, said Karad, will be managed by a seven-member board of directors advised by a four-member expert committee.

There are six sugar cooperatives in the district -- Niphad, Nashik, Ranwad, Kadva, Girna and Vasantdada. Of these, Girna has been liquidated while Nashik is sick. It is expected that sugarcane growers from 38 villages of Niphad taluka and ten villages from Sinnar taluka will buy shares in the new company.