HPCL bids for two closed sugar mills

Patna: The sugarcane department has started processing the prospective bids earlier made to acquire closed sugar mills of Bihar government. To begin with, the department is processing the bid made by Hindustan Petroleum Corporation Limited (HPCL). Altogether eight government sugar mills are closed and the sale process has been initiated for only two of the mills.
"First, the HPCL bid is being processed. It will take some time for the final outcome,," a cane department source told TOI.
Once favourably decided, the HPCL proposal will be sent to the cabinet for approval. The company had earlier paid Rs 50 crore, including the bidding amount of Rs 10 crore.
Sources said the company has agreed to produce both sugar and ethanol, unlike in the past, when the prospective bidders had desired to produce ethanol only. As of now, there would be no independent production of ethanol at the acquired sugar mills.
As a matter of fact, when the Nitish Kumar-led NDA government came to power in November 2005, several attempts were made to sell the closed government sugar mills, but only a few could be sold. Many interested parties wanted to directly produce ethanol from sugarcane, but the state government's plea in this regard was rejected by the Union agriculture ministry, saying the state government's move to produce only ethanol violated the Cane Control Order.
Meanwhile, the state government has released money to clear Rs 167 crore dues of cane growers, besides releasing over Rs 1 crore to clear the dues of staff of closed sugar mills. Cane prices payable by sugar mills to farmers have already been raised by Rs 5 per quintal for the current season by the government.