Amid global sugar shortage, no takers for UP mills
01 Sep 2009
The attempt by the Uttar Pradesh government to sell some of its state-owned sugar units has come a cropper, according to reports.
Disinterest among potential buyers has forced the Uttar Pradesh government to defer the financial bidding for 24 'federation' sugar mills to mid-September.The date for filing the financial bids for 11 'Sugar Corporation' units has also been extended from 31 August to 7 September.
Business Standard quoted unnamed 'official' sources to say that the interested parties would be told about the expected price for these units by next week.
Since there is marked disparity between the prevailing 'circle' and 'market' rates of land occupied by these units depending upon location, the expected price would be higher than the reserved price.
The government is following the 'Swiss challenge method' for the bidding process to secure higher price for the units on block, the paper reported. Last year, the state government had made a failed bid to sell them.
A total of 35 sugar corporation and federation units have been put on the block. As a sweetener, the government is offering industrial alcohol licenses and assurance of continuation of existing cane area to individual units.