Reliance Industries, HPCL to run sugar mills in Bihar

Patna, Jan 4 (UNI) Mukesh Ambani-controlled Reliance Industries Ltd (RIL) and leading oil marketing firm Hindustan Petroleum Corporation Ltd (HPCL) have bagged the contract for running the government-owned sick sugar mills in Bihar.

The successful execution of these deals would fetch more than Rs 300 crore to be used for settlement of the labour dues of these mills, financing of VRS/Exit schemes and for meeting their other statutary liabilities.

State Sugarcane Industries Minister Nitish Mishra said here today that RIL was the highest bidder for Motipur Sugar Mill in Muzaffarpur, while HPCL's bid was found to be the highest for sugar mills at Sugauli (East Champaran), Lauria (West Champaran), and Hathwa (Gopalganj).

''The mills at Lauria and Hathwa would have the distilleries attached to them'', he added.

''Rollocon projects was the highest bidder for the Lohat sugar mill, while S S Infrastructure made the highest bid producing Sugar at unviable unit at Ryam in Darbhanga,'' Mr Mishra said adding after submission of overseeing agency to the state government on bidding process, the matter would go to State Cabinet for securing its approval.

''After approval of the Cabinet, agreements will be signed with each such bidder for assets transfer of these mills to the companies concerned on a sixty-year lease'', he informed.

''The revival of these sugar mills will be a great boon for the farmers of Bihar and facilitate its emergence as an ethanol hub,'' Mr Mishra emphasised.

UNI KKS KK SBA RN2102