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Tuesday, Jul 09, 2002

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Agri-Biz & Commodities - Sugar

`Privatisation of sugar mills thru transparent bids'

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THE privatisation process of nine cooperative sugar mills in the State will be through a transparent competitive bidding process and efforts have been made to ensure that the Government realises the true value for these units, the State Information Minister, Mr S. Chandramohan Reddy, said.

Speaking to presspersons here on Monday, the Information Minister said that the biding process had inherent check mechanism wherein the fair value of the mills and related properties, which are put up for sale, will be ensured.

The Government has embarked on the process of privatisation as it was no longer in a position to infuse addition funds into these loss-making co-operative sugar units. The losses had mounted to Rs.138 crore, he said.

In order to ensure that these units are run on profitable lines under new management though a competitive bid process, the Government decided to privatise all co-operative sugar mills. In the first phase, four units which were closed were taken up. Now, the Government, through the Implementation Secretariat, an independent body overseeing the privatisation process, has decided to put up nine more co-operative sugar units for sale through a bidding process.

To see that the Government receives the appropriate market value from the sale of these sugar units, in addition to the valuation by an independent valuer, it was seeking the market value from the district collectors as they had the right information on properties, he said.

Mr Deepak Kumar Panwar, Commissioner of Public Enterprises Reform, said units at Amadalavalasa, Bhimadolu, Nannapaneni, Kovvuru, Sri Venkateshwara, Chittoor, Paleru and Nizamabad have been put on the block.

Both the Chittoor and Nizamabad sugar units are located near the town and the property associated with the mills can fetch greater market value, it was decided to get additional information on them from the District Collectorates, he said.

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