Kolkata, June 09: At a time when uncertainty over minimum support price of sugarcane in Uttar Pradesh has left many a private mills high and dry, the Orissa government has decided to sell or lease out the lone sugar mill in the state, Nayagarh Sugar Industries Limited (NSIL), as part of its privatisation programme. The government has already appointed Adam Smith Institute as adviser for the proposed sale and Srei Capital Markets Limited to act as marketing advisor, official sources said.
They said that Department of Public Enterprise has even invited bids for the assets and business of the company for 'outright purchase' or 'longer term financial lease with eventual transfer of assets', official sources said.

The mill, located at Panipoilla which is about 80 kms from Bhubaneswar, has a capacity of 1250 TCD and employed about 150 people.

NSIL, formed as a co-operative enterprise controlled by the Orissa government, was in the business of manufacturing and selling of plantation and white sugar for almost 12 years.

It was learnt that the government was looking for credible investors, not necessarily from the sugar industry, who could ensure continuity of the operation of the mills.
Mills facing difficulty in up might find an opportunity to move to an alternative place like Orissa, industry sources said.

The sources said that the assets and business of NSIL would be sold unencumbered by any liabilities, both existing and contingent, as on the transfer date.
Bureau Report