The Mayawati government, which has decided to sell of its entire equity in the Uttar Pradesh State Sugar Corporation (UPSSCL), is ready to answer the queries of the five bidders who had shown interest, and provide them required information about the mills.
The sugarcane department, which has already evaluated the technical bids placed by these five companies and given them the go ahead for physically, verifying and inspecting the assets and liabilities of the mills, has called a bidders’ meeting on August 8. In the meeting, department officials are getting ready to give details of the assets and liabilities of all the mills and provide all other information that the companies wish to have. On that day, the date for placing the financial bids will also be finalised. The five bidders who had placed their bids on July 18 are Gammon India, Chaddha Group, Dalmiya Sugar, Uflex Group and Era Landmark.
According to officials of the sugar cane department, the consultant for the project, Ernst & Young placed the presentations of the technical bids of all the five bidders in front of the core group formed for the divestment project and stated that all the five bids have been found to be eligible. Now requests for proposals would be issued and bidders would be invited to place their bids.
However, before the financial bids are opened, the government would fix a reserve price as analysed by the valuer and whosoever places the highest bid, would be handed over the mills after the core group and the cabinet gave their approval. Meanwhile, the government, which is simultaneously working on hiving off 25 of the 28 sugar mills in the co-operative sector and is in the process of appointing a consultant for it, has called a pre-bid meeting for interested companies for the same on July 28.
According to sources, all the 25 mills are in running condition, while the sugar mills in Manjhola in Pilibhit, Nanota in Sahajahanpur and Dhurpan in Gorakhpur are involved in legal imbroglio. Interestingly, while the government is eager to sell of all the 33 sugar mills of the sugar corporation to any one company, it is open to different companies buying out the 25 mills in the co-operative sector.
Once the process of hiving off sugar mills of the corporation and co-operative sectors is over, the privatisation of the sugar industry in UP, would be complete.