Maharashtra may lease sick sugar co-operative to Uniworld

PUNE: As the sugar mills from Uttar Pradesh threaten to keep shut or move out of the state over the government policies, the Maharashtra government has decided to hand over a sick sugar co-operative on lease to Uniworld, a joint venture between UP-based Simbhaoli Sugars and London-headquartered commodity broker ED and F Man.

If the deal goes through, Simbhaoli will be the second UP-based sugar mill after Dalmia Bharat Sugars to have a presence in Kolhapur, which produces cane with highest sugar content in the country. According to sources, Uniworld had conveyed to the state government in October its inability to take the mill for the current season.

Uniworld wanted to take over the mill about two months before the beginning of the crushing season as some critical repairs had to be done. "Also, Maharashtra is a new geography for the company. The culture is different, the harvesting systems are different," said the source.

Though the officials at Simbhaoli and ED and F Man could not be contacted, industry sources said that internal discussions are still on about taking the sick sugar mill on lease.

The government had started the bidding process in July for leasing the mill,which has liabilities of about Rs 75 crore.