Locational
Advantages :
The factory is located in an area where the irrigation potential
is huge. The Patgaon
Dam on Vedganga River is only 7 k.m. away from the factory site
at Tambale. The weather is conducive and the soil is ideal for
the growth of sugarcane with natural drainage. There are natural
compulsions for growing sugarcane in the absence of any other
competitive crop. The recovery also is one of the highest in the
country i.e.12.5% and above. It is pertinent to note that some
of the best run sugar factories in the country are also located
in this region. Apart from the socio-economic considerations,
locational advantages also played an important role in selection
of Bhudargad Taluka as the site for the sugar factory.
| 1) |
The
site is well connected by asphalt roads and is situated close
to the Mumbai - Goa Coastal Highway, making transportation
of raw materials and finished goods easier. |
| 2) |
It is situated close to two railway stations, an airport and
a sea port. |
| 3) |
The
site is situated on the border of Western Maharashtra and
Karnataka, which is surrounded by good market centers like
Kolhapur, Sangli, Satara, Pune. Belgaum and Mumbai. |
| 4) |
The
region will benefit immensely from various irrigation schemes
which are under implementation, resulting in increased sugarcane
potential. |

Some
of the other advantages unique to the location are:
| 1) |
Bhudargad Taluka is inundated by two perennial rivers, Vedganga
and Dudhganga. |
| 2) |
Assured water
availability throughout the rainy season. |
| 3) |
Huge irrigation potential that will be created in Budargad
Taluka on completion of the various irrigation projects. |
Thus,
the setting up of a sugar factory in Bhudargad ensures that the
farmers in the region would be benefited as they can sell their
crop without the recovery getting affected due to longer transportation
time, and therefore get better prices.
Sugarcane
Potential In Kolhapur District :
Kolhapur District is the most prominent among the sugarcane growing
regions in Maharashtra. It can boast of the highest yields and
recovery in India.
The project has earned the support and encouragement of various
authorities and agencies who have recognized the potential of
the project and its promoters. It serves as a role model for similar
ventures by other rural women in the country, also leading to
economic elevation of their social status.
Overwhelming
support from the Govt. of Maharashtra. :
This venture has received overwhelming support from the State
Government which has provided special concessions to the project
in order to encourage the promoters to set up the sugar factory
:
| 1) |
The
State Government has made an exception to the norms of government
contribution to the share capital of cooperative sugar factories
in Maharashtra, by consenting to subscribe to 90% of the share
capital of IGBMVSSK. |
| 2) |
The
State Government has also consented to provide payment guarantee
to the lenders, against default by IGBMVSSK on its term loan
commitments. |
| 3) |
The
State Government has allowed an extended area of operation
for IGBMVSSK, which includes :
a) Kolhapur District - all 12 Talukas .
b) 3 Talukas of the neighbouring Sindhudurg District
. |
Support
from Overseas Organisations:
Encouragement has come not only from within India but also from
entities outside India, who have pledged their support to this
unique venture.
IGBMVSSK has sought technical help for development
of sugarcane by adopting drip irrigation system developed by Netafim
Irrigation India Pvt. Ltd., the pioneers of drip irrigation.
The farmers will benefit from their modern methods of cane cultivation
and water management.
Adoption
of scientific methods like the above will bring a much larger
area under cultivation and thereby directly contribute to the
economic development of Kolhapur District, particularly Bhudarghad
Taluka, which is a backward area.