Bihar to transfer five closed sugar mills to private bidders
28 Jan 2008
Mumbai: Bihar will transfer five closed sugar mills to successful private bidders, including Reliance Industries and Hindustan Petroleum Corporation, in February and the mills are expected to start crushing by 2009-10 season.
Reliance Industries, the country's biggest private refiner, and state-run oil firm HPCL were among major industrial houses who have submitted financial bids for reviving 15 sugar mills in the state.
Reliance Industries Ltd and Hindustan Petroleum Corp Ltd won bids for one and two mills respectively.
The winners would be given the mills on a 60-year lease and are likely to use them for extracting ethanol, which is to be mandatorily mixed with petrol from this year.
SBI Capitals conducted the auction for the mills at Rayam, Lohat, Motipur, Sugauli and Bihta.
Transfer of these units should be completed by the end of February after which they will submit project plan, sources said.
The state government will invite fresh bids for the remaining 10 mills in March, Mishra said.
The mills will be given to oil refining firms to produce ethanol for blending with petrol, Mishra said.