NSL distillery preferred bidder identified

HYDERABAD Oct. 5. The Cabinet Sub-Committee (CSC) has approved Continental Coffee Limited as the preferred bidder for Mombojipalli distillery of Nizam Sugars Limited (NSL). Of the three bids received for the unit, Contingental submitted the highest bid offer of Rs. 7 crores, followed by Madhucon Projects Limited with an offer of Rs. 6.5 crores and Delta Paper Mills with an offer of Rs. 4.2 crores.

With the finalisation of the bid, the Implementation Secretariat (IS) has successfully completed the privatisation process related to all seven units of the NSL. Four units -- a sugar mill and distillery at Shakkarnagar, sugar mills at Mombojipalli and Metpalli -- have been sold under joint venture agreement with Delta Papers Mills with a new company -- Nizam Deccan Sugars Limited. Bidders have been identified earlier for the two other sugar mills at Latchayyapeta and Madhuranagar.

A decision has been taken to wind up the A.P. State Federation of the Cooperative Sugar Factories Limited as its survival is considered doubtful in the face of the on-going privatisation drive. The federation was set up to render technical, managerial and coordination assistance to cooperative sugar factories.

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