The cabinet committee on disinvestment of the Orissa government is meeting here tomorrow to decide on the sale of Badamba cooperative sugar mills and ferrochrome plant of the state-owned Industrial Development Corporation (Idcol).
Orissa had put two cooperative sugar mills located at Nayagarh and Badamba on the block for sale in October, 2002. But there was lukewarm response to the invitation of bids, the last date of which was December end, 2002.
Sources said, while there was no bid for the Nayagarh mill, only one party, the Chennai based Shakti Sugar, had bid for Badamaba mill. Incidentally Shakti Sugar is currently running the Badamba mill on a lease arrangement.
In this backdrop tomorrow's CCD meeting, to be chaired by the chiefminister,is crucial as it was supposed to decide the most preferred bidder and modalities for sale.
In the absence of any bidder for Nayagarh factory, the CCD can, at least, take a decision on Badamba mill as there is an opportunity in the form of Shakti Sugar to privatize the unit.
The CCD is also expected to take a decision on whether to sell the 18,000 tonnes per annum Idcol ferrochrome plant located at Jajpur with or without captive mines.
Earlier following a debate in the government over the issue, the CCD had asked IDBI, the consultants to the sale process, to ascertain the views of the bidding parties on the matter.
Of the11 firms who had bid for the ferrochrome plant, eight are reported to have expressed views that they may not be interested in the deal if the unit is sold without the captive mines.
The bidders, who are willing to take up the unit even without captive mines included Visa International and Tata Steel while prominent among those who are against de-linking the captive mines from the sale process included Jindal Strips and Jindal Power and Steel.
In this backdrop, the CCD is likely to take a final decision on sale of the unit with or without mines basing on the report of IDBI in this regard.
Idcol ferrochrome plant has 222 hectres of captive mines of which only 65 hectres have been explored by the company till date. The government concern on sale of mines along with the ferrochrome plant mainly emanates from the repeated allegations that bidders are only keen to grab precious chrome ore reserve, without actually being interested to go for value addition within the state.
As an alterative to the de-linking of captive mines in the sale process, the government proposes to ensure supply of chrome ore to the prospective buyer of the unit at negotiated prices.
