Deadline for filing bids for UP sugar mills extended till Sept 1

Plan to usher in privatisation in the state’s sugar industry by handing over the 25 sugar mills of the Uttar Pradesh co-operative sector to the private sector suffered a minor setback on Tuesday with only one advisor qualifying for the financial bid. As a consequence, the state government has now extended the deadline for filing the bids by another ten days. The technical as well as financial bids will now be opened on September 1.

It may be mentioned that the government had initiated the process by of identifying consultants for the transfer of assets or liabilities of the 25 cooperative sugar mills of UP and transferring them to the private sector and has asked for request for qualification (RFQ) and request for proposal (RFP) from interested companies. In response to this three companies, IFCI, Ernst & Young and Tecmek had submitted their bids. When the technical bids were opened on Monday, August 18, Tecmek’s bid was found to be faulty and was thus disqualified. However, before opening the financial bid on Tuesday, it was found that Earnst & Young’s papers, too, were not in order, thus forcing the cancellation of the bid process and issuing fresh invitations for the same. “Since we want a fair, transparent and competitive bidding for the project, we decided to call for fresh bids so that our choice for an advisor for the process is not limited,” said cane commissioner HS Das.

It may be mentioned that the state government has also initiated the process of selling off its entire equity in all the 33 mills of the Uttar Pradesh State Sugar Corporation (UPSSCL) through competitive bidding and has invited expressions of interest (EoI) from valuers having relevant experience in valuation of shares to assist it in the transaction. This decision was taken as running the loss-making 33 sugar mills was costing the Uttar Pradesh government a whopping loss of Rs 2,900 crore.

source:financialexpress