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| Ufex, Chaddha group may bid for UP sugar mills |
| Virendra Singh Rawat / New Delhi/ Lucknow Sep 24, 2008, 00:49 IST |
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Noida-based Uflex and Chaddha group may formally bid for the 33 ailing corporation sugar mills in Uttar Pradesh.
Infrastructure major Gammon India had submitted its bid in this regard.
The state government yesterday extended the date for filing the bids for these mills by three days to September 25, after Uflex and Chaddha were keen to participate as well.
In July five companies Gammon, Dalmia, Era, Chaddha and Uflex had submitted Expression of Interests (EoIs) as per the modified terms and conditions for the divestment of the corporation sugar mills. The EoIs were opened on July 18.
The five companies were required to submit their bids. However, only Gammon submitted its papers till September 8, which was the last date.
Later, the last dates were extended to September 16 and September 22.
A senior official of one of the four remaining companies had then told Business Standard that as per their due diligence, it was not a “winning proposition.”
“The terms and conditions do not suit us…had the individual mills been put on the block instead of a complete package, we would have been interested,” he added.
Indian Sugar Mills Association Secretary C B Patodia says that the sugar sector was going through a bad phase and that they do not have the capacity to buy these mills.
Now, the bid is likely to be open on September 25.
Although, the state government had altered the land use norms of these mills, the private companies so far do not seem interested, which has put a question mark on the whole process of divestment.
Earlier this year, five companies, including Bajaj Hindusthan and Dalmia had submitted EoIs for the units.
However on July 4, the state government rejected all the five bids and invited fresh EoIs with modified terms and conditions.
The bids were cancelled since Recovery Certificates (RCs) had been issued against some of the bidding companies, besides other anomalies were also detected.
The corporation mills are located at prime locations in UP and have sizeable land asset. Most of these mills have obsolete machinery.
Out of the total 33 sugar corporation mills, 22 are in working condition, while only 17 of them had participated in the 2007-08 crushing season.
Besides, four of these sick units are under the purview of Board for Industrial and Financial Reconstruction (BIFR).
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