Four PSU sugar mills may reopen in Bihar

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Patna, Aug 25 : Four of the 15 state-run sugar mills may reopen with private entrepreneurs showing keen interest in the mills declared sick sometime back.

The move is significant in the wake of the NDA governments amendment in Sugar Act for opening independent units for production of sugar and maize-based ethanol, sources said. HPCL, Reliance Industries Ltd and Rollcon Projects Private Ltd have evinced interest in the revival of the sick mills. The four mills are located at Lauria in West Champaran district, Sugauli in East Champran, Motipur in Muzaffarpur and Lohat in Gopalgunj.

The private companies, namely HPCL and RIL, had submitted expressions of interest for acquisition of land and other installation of ethanol production units. The Lauria sugar mill and the Sugauli unit would be handed over to the HPCL, sources confirmed.

But, the Centres new cane control order prohibiting opening of independent mills for the production of ethanol has come as a blow to the state forcing the chief minister to take up the matter with agriculture ministry seeking change or withdrawal of the policy. The circular makes it mandatory for states to allow only sugar producing units for ethanol production.