Bihar to hand over two sugar industries on lease

Last Updated: Monday, October 12, 2009 - 23:50

Patna: In its sustained bid to promote sugar
industries in Bihar, the state government has decided to hand
over two sick mills — Ryam in Darbhanga and Sakri in Madhubani
— to a private entrepreneur on lease for 60 years.

A Delhi-based firm Tirhut Industries emerged as the
successful bidder for taking over the two closed mills, a
senior official said.

The private firm would revive Ryam sugar factory and
would develop a major ancillary unit in Sakri unit with an
estimated investment of Rs 300 to Rs 350 crore, he added.

Tirhut would be the third private firm in the state after
HPCL and Reliance Industries to get such sugar mills on lease.

Earlier, Reliance Industries was awarded the Motipur
sugar factory in Muzaffarpur, while HPCL got Sugauli sugar
mills in East Champaran and Lauria mills in West Champaran
districts.

The letter of intent to Tirhut Industries would be issued
within a day or two, the official said.

Ryam and Sakri sugar mills, owned by the Bihar State Sugar
Corporation, would be handed over to Tirhut on a lease amount
of Rs 9.11 crore and Rs 18.25 crore, respectively, for a
period of 60 years extendable for another 30 years, the
official said.

The state government would provide an additional 42
acres of land for setting up big sugar unit at Ryam.

Both the Ryam and Sakri mills, which were sick for over a
decade, are smaller units with crushing capacity of 1,000 TCD.

These units would become functional in next two years,
sources said and pointed out that Tirhut Industries
would be the third private party in the state after Hindustan
Petro Chemicals Limited (HPCL) and Industry giant Reliance.

Earlier, HPCL was awarded the bid for Sugauli East
Champaran district and Lauria sugar mills in West Champaran
district and Reliance Industries for Motipur sugar factory in
Muzaffarpur.

The HPCL has already signed an MoU with the state
government on January 18, 2009 to start Sugauli and Lauriya
sugar mills with an estimated investment of Rs 300 crore for
each of the units, sources said.

Reliance Industries bagged the contract for Motipur
factory at a price of Rs 57 crore, marginally higher than the
floor price of Rs 55.36 crore, but the industry giant had not
moved an inch forward after that, they confided.

Bureau Report



First Published: Monday, October 12, 2009 - 23:50

comments powered by Disqus