RIL, HPCL submit bids for Bihar sugar mills

Patna: Petrochemicals giant Reliance Industries and public sector company Hindustan Petroleum Corporation have submitted bids for control of three state-run sugar factories in Bihar.

Reliance emerged as the highest bidder for the Motipur unit with an offer of Rs 57 crore, whereas HPCL submitted winning bids of Rs 45 crore and Rs 50 crore for the Lauriya unit and Sugauli sugar mills respectively.

Both RIL and HPCL deposited 10 per cent of the bid amount for the three sick sugar factories, official sources said.

The centre's direction prohibiting the production of ethanol from sugarcane juice had dealt a severe blow to Bihar government's plans to develop the state as an ethanol hub.

The state lost out on five investment proposals worth around Rs 14,000 crore for setting up sugarcane juice-to-ethanol manufacturing units.

The Sugarcane (Control) Amendment Order, 2007 issued by the Union Ministry of Consumer Affairs, Food and Public Distribution, came into effect from December 28. It contained explanation (3) in clause 3 (sub-clause), that prevented Bihar from going ahead with the ethanol project, the sources added.