Reliance, HPCL renew interest in Bihar sugar mills

Notwithstanding the Centre's directive prohibiting production of ethanol from sugarcane juice, Reliance Industries Ltd and Hindustan Petroleum Corporation Ltd have renewed their interest in taking over three state-controlled sick sugar factories in Bihar.

Both RIL and HPCL deposited 10 per cent of the bid amount for the three sick sugar factories, official sources confirmed.

While the RIL deposited Rs 5.70 crore with the state government for the take-over of the Motipur unit in Muzaffarpur district, the HPCL paid Rs 4.5 crore and Rs 5 crore for Lauriya and Sugauli sugar mills respectively.

RIL has emerged as the highest bidder at Rs 57 crore for the take-over of the Motipur unit. Similarly, the HPCL emerged the highest bidder at Rs 45 crore for Lauriya unit and Rs 50 crore for Sugauli sugar mills in East Champaran district, sources said.

The Centre's no to production of ethanol from sugarcane juice had earlier dealt a severe blow to Bihar government's plan to develop the state as an ethanol hub losing five investment proposals worth around Rs 14,000 crore for setting up new sugarcane juice-to-ethanol manufacturing units.

The Centre's directive had led to the state losing five major investment proposals through which 15 new sugarcane juice-to-ethanol manufacturing facilities were to be set up in Bihar, the sources said.

The Bihar State Industrial Promotion Board had approved all these projects and cabinet sanction for all but three had also been obtained, they said.

State minister for sugarcane industries Gautam Singh said that deposit of 10 per cent of the bid amount for the three units by big players like RIL and HPCL was 'a positive development' and it would help others to overcome their inhibition and take a relook at the prospects offered by the state.

"We are expecting some more proposals for developing the sugar industry in Bihar," he said.

The second round of bidding process for sick units, including Siwan (Hathua distillery, New Siwan, Samastipur, Sikri, Banmankhi, Goraul, Warsaliganj, Bihta and Gurari, is expected to be initiated next month.

SBI Caps is preparing a fresh document for request for qualification (RFQ) so that the advertisement for re-bid process may be taken up sometime in June.