Four of 15 state-run closed sugar mills set to reopen

India(Patna) (PTI): The stage seems set for revival of four of 15 closed state-run sugar mills with private entrepreneurs showing keen interest in them.

HPCL, Reliance India Limited and Rollcon Projects Private Limited are interested in the revival of the four sugar mills declared sick by the state government sometime back.

The four mills are located at Lauria in West Champaran district, Sugauli in East Champran, Motipur in Muzaffarpur and Lohat in Gopalgunj, sources in the state's Sugracane Development Department say.

The Lauria sugar mill with its distillery and the Sugauli unit would be handed over to the HPCL, the sources said.

The move was regarded as a significant development in the wake of the amendment by the state's NDA government to its Sugar Act facilitating opening of independent units for the production of sugar and maize-based ethanol, they said.

The private companies, including HPCL and RIL, had submitted their Expressions of Interest so that the process could be initiated for the acquisition of land and other related matters for the installation of ethanol production units.

In the meantime, the Centre has circulated its new cane control order which prohibited opening of independent mills for the production of ethanol.

The circular made it mandatory for the states that only sugar producing units could be allowed to produce ethanol, the sources said.

The Centre's order came as a big blow to the state forcing the chief minister to take up the matter with the Union Agriculture Ministry seeking change or withdrawal of the new cane control order.

As the Centre declined to address the state's grievances, Chief Minister Nitish Kumar decided to go in for the revival of its closed sugar mills.

In a bid to expand the base of sugarcane industry, the state's NDA government has also received proposals worth Rs 5376.43 crore from other private firms for setting up 22 new sugar mills in the state, official sources said.

"Work has already begun on the sugar mill complex at Guruwalia Bishwas under Chanpatia block in West Champaran district," the sources said.

The state was firm in its resolve to continue to encourage the sugarcane producers who generally supply the raw material to sugar mills, they said.

The state government has facilitated insurance of sugarcane crops to compensate the crop losses the farmers suffer on account of floods, besides making available grants of Rs seven per quital of sugarcane to farmers in its bid to ensure they get appropriate prices for their products during the last fiscal.

The state government had also taken a decision to go in for phase-wise revival of the rest of the closed state-run mills if the investors showed similar interest, they said.

source:hindu