Lucknow: In a bid to infuse some sweetness into the sugar story fast going sour in the state, the UP government is contemplating giving the private sugar factories some kind of relief.

UP chief secretary Jawed Usmani has called a meeting on Monday to decide on the sops; and the departments of excise, finance, commercial taxation and Uttar Pradesh Power Corporation have been asked to attend.

According to sources, the agenda of the meeting revolves around the few pertinent demands that have been raised by the industry in its recent letter to chief minister Akhilesh Yadav.

The high-level committee will deliberate on bringing down the percentage of levy molasses for country liquor from the current 22%, removing the condition of selling 77.5% free molasses in the open market only after 22.5% levy molasses is lifted by the country liquor lobby, removing the restrictions on the inter-state movement of free molasses, getting the UPPCL to pay up the R763 crore that is due to the sugar mills for the electricity that they supplied to the corporation till March 2012 and a full exemption on entry tax on sugar.

The meeting will also deliberate on whether the state government can work towards getting the private mills’ loans sanctioned by the public sector banks and also give a bank guarantee and subsidy on the interest. “The meeting assumes significance as it will decide on various issues that have been plaguing the sugar sector,” said a miller.