Pune: In a move that has raised eyebrows, ₹2 crore has been allocated to the Kukadeshwar Adivasi Hirda Industrial Producers Cooperative Society in Junnar constituency, represented by Ajit Pawar faction MLA Atul Benke, despite strong opposition from both the Planning and Finance Departments.
The funding decision came just days after Benke met with Nationalist Congress Party (NCP) chief Sharad Pawar, fueling speculation about his political future.
The institution processes Hirda (a medicinal herb) found locally, which is then used in medicines, providing a boost to local employment. Benke had requested financial assistance for this project from the state government.
Between 2014 and 2018, the state government had allocated ₹1.2 crore to this project. Additionally, NABARD had provided a loan of ₹1.7 crore from 2012 to 2015.
The society procured machinery for processing Hirda, but the industry never took off, leading to defaults on loan payments to NABARD. As a result, the project was declared a non-performing asset, and the subsequent COVID-19 crisis further hampered its completion.
A request for additional funds was made to the Tribal Welfare Department, but it was denied due to the project's financial status.
On September 15, 2022, during a meeting chaired by Chief Minister Eknath Shinde, it was decided to provide ₹2 crore in a lump sum to rescue the project. It was also decided that any further funds required would be provided by the Tribal Welfare Department once the project was back on track.
Interestingly, just a month before this meeting, Ajit Pawar had joined the Mahayuti alliance and became Deputy Chief Minister. Despite the directives from Shinde, no action was taken on the ₹2 crore aid until August 6, 2024.
The Planning Department rejected the proposal to assist the society, citing conditions established in 2013. The department reminded that any cost escalation should be borne by the institution itself, and the government would not provide any further assistance.
The Finance Department echoed these concerns and also opposed the funding. However, just two weeks ago, MLA Atul Benke met Sharad Pawar, leading to speculation about his potential defection. Shortly after this meeting, the ₹2 crore fund was finally allocated to the society.