Industry & Economy
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Disinvestment
Nizam Sugars units valued at Rs 124 crore
Our Bureau
HYDERABAD, April 22
THE combined value of the eight units of Nizam Sugars Ltd (NSL), which are up for sale was fixed by competent, registered valuers at Rs 124 crore, according to the Implementation Secretariat (IS), under the Public Enterprises Department of the State Government.
In contrast the sale offers received by the Government consequent to the open bids was of the order of Rs 126.90 crore.
The sale offers include the highest bids received for Zaheerabad Sugar unit, Mombojipalli distillery and Latchayyapeta sugar mill.
NSL had been incurring losses due to a variety of reasons since 1976-77. The accumulated loss as on March 31 2002 was about Rs 135 crore.
Its net worth of Rs 34 crore stood eroded and it owed Rs 297 crore to the Government and various other agencies, the IS said.
In view of this precarious financial position and unviability of a revival process, the Government decided to go for the sale option.
Justifying the recent finalisation of a joint venture for Rs 65.40 crore for the four NSL units, the IS said the monetary value offered by Delta Paper Mills Ltd was found to be the highest under various cash flow scenarios.
Delta Paper Mills has turned around the defunct Hanuman Junction Co-operative Sugar Mill within six months of taking over in September 2001, the IS claimed.
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