Reliance top bidder for Bihar sugar corp unit

Reliance Industries Ltd has emerged as the highest bidder for the Motipur unit of Bihar State Sugar Corporation at a price of Rs 57 crore, marginally higher than the floor price of Rs 55.36 crore.

Hindustan Pertoleum Corporation Ltd (HPCL), the public sector oil marketing company, has emerged as the highest bidder for two closed units. India Glycols and Upper Ganges Sugar Mills were among the other majors bidders who did not qualify.

"HPCL has made a bid of Rs 45 crore for the Lauriya unit in West Champaran against the floor price of Rs 29.64 crore and a bid of Rs 50 crore for the Sugauli unit in East Champaran against the floor price of Rs 45.40 crore," said a state official.

Last November, the Bihar government decided to offer 15 closed mills belonging to the corporation for a long-term lease of 60 years, extendable by 30 years, on the recommendation of SBI Capital Markets.

However, no bids were received for the three units. These mills have been lying closed for more than a decade. The state government is expected to raise about Rs 300 crore by offering these 12 units on lease.

Of this, Rs 220 crore will be used to clear wages and form an exit scheme for the workers employed in the 15 units. Of the 12 units for which bids opened today, 6 have been reserved for sugarcane-based industries.