GoM to decide on Gosavari Manar sugar unit today

The fate of Nanded-based Godavari Manar - a sick sugar unit with an installed capacity of 2,500 tonne crushing per day (TCD) - hangs in balance.

The Group of Ministers led by Patangrao Kadam, Minister for Co-operation, Relief, Rehabilitation, would decide its future on Tuesday.

Remaining unoperational for the last two years, Godavari Manar is managed by the Nanded District Co-Operative Bank. The bank had given a loan of Rs 80 crore to the sugar unit a few years ago.

Since the factory was not operational, the bank asked for sealed tenders from the interested private and co-operatives which was closed on July 28. The same day the bid was opened by the bank in the presence of the Commissioner of Sugar in Pune.

The nature of bid was slightly different from the normal bid. As the bank wanted to recover the loan, it called for bids to lease out the factory for six years with per tonne per season fixed fee basis after calling for minimum rent per season of Rs 1.25 crore.

The three bidders with highest quote came from Dollex Industries, a privately-owned alcohol and ethanol producer with manufacturing facilities in Karnataka and Goa.

Dollex Industries quoted it at Rs 65 per metric tonne after the fixed deposits. Two co-operatives naming Baiznath from Nanded and Raja Ram Bapu from Sangli were the second and third highest quoters at Rs 40 per tonne and Rs 28 respectively.

"Bank officials told me that the Group of Ministers would decide whether to go ahead with such tenders or not. As the preference would be given to co-operatives, the redecision would be taken only by them on Tuesday," a Dollex official said.

"This is yet another instance to prevent a private player in Maharashtra's sugar industry," an industry player said.