The Cabinet Committee on Disinvestment (CCD), chaired by the Orissa chief minister Naveen Patnaik today approved the sale of the Dhenkanal-
Based Kalinga Weavers’ Cooperative Spinning Mill to a private entrepreneur named Oriental Agency. Oriental Agency was the single largest Bidder for the cooperative quoting a price of Rs 6.16 crore.
The CCD also decided to initiate legal action to cancel the share purchase agreement signed by the state owned Industrial Development Corporation (Idcol) with the Kolkata-based Varsha Fabrics Limited for sale of Hirakud Industrial Works (HIW) . Idcol will move the Orissa High
Court in this regard. The CCD decision follows the alleged violation of terms and conditions of the agreement.HighHowever, the CCD deferred the decision on a one-time settlement of Nayagarh Sugar Cooperative Limited. Sources said, the new owners of the
Sugar mill, which was sold by the state government in 2004, had proposed to go for one-time settlement of the dues at an interest rate of 4 per cent. However, the CCD has asked the state finance department to calculate the dues on the basis of an interest rate of 8 per cent. The CCD will take a Decision on the matter after the finance department files its report