The BJP-led Mahayuti government in Maharashtra is facing criticism for recommending loans to sugar cooperatives linked to ruling alliance legislators, despite the state's precarious financial situation. Maharashtra's debt has already reached a staggering Rs 7.8 lakh crore, largely due to poll-related sops.

Now, the state government has advised the National Cooperative Development Corporation (NCDC) to extend loans totalling Rs 1,104.6 crore to nine cooperative sugar factories with ties to prominent Mahayuti alliance MLAs, as reported by The Times of India.

These loans, which require a state guarantee, would add to Maharashtra's liabilities, raising concerns over fiscal prudence. The state's finance department has already projected a fiscal deficit of approximately Rs 2 lakh crore, citing difficulties in fulfilling the Eknath Shinde government's election promises.

However, with the Mahayuti alliance retaining power under the new Chief Minister Devendra Fadnavis, the debt burden could escalate further if all poll commitments are met.

The recommended NCDC loans, originally proposed last year, have now been revised by the Fadnavis government, allegedly to benefit legislators within the alliance. Critics argue this move could trigger a significant political controversy.

These loans aim to address the working capital gaps of the sugar cooperatives but have sparked allegations of favouritism.

Among the recipients are sugar cooperatives connected to prominent figures in the Mahayuti alliance, including the Sharad Cooperative Sugar Factory linked to MLA Rajendra Patil Yadravkar, the Ajinkyatara Cooperative Sugar Factory associated with PWD Minister Shivendrasinh Raje Bhosale, and the Sadashivrao Mandlik Cooperative Sugar Factory tied to former Shiv Sena MP Sanjay Mandlik.

Other beneficiaries include the Chhatrapati Rajaram Cooperative Sugar Factory linked to BJP MLA Amal Mahadik, the Kumbhi Kasari Cooperative Sugar Factory associated with Shiv Sena MLA Chandradeep Narke, the Sahakar Maharishi Shankarrao Kolhe Cooperative Sugar Factory, and Shri Ganesh Cooperative Sugar Factory in Ahmednagar. Kolhapur’s Vasantrai Desai Ajara Cooperative Sugar Factory, linked to NCP leader and Medical Education Minister Hasan Mushrif, is also likely to benefit from the loans.

The government’s recommendation has fuelled concerns over fiscal mismanagement, as critics argue that prioritizing politically connected entities over broader public welfare could deepen Maharashtra’s financial crisis and undermine governance.