Hyderabad, Telangana: To revitalise units of Nizam Sugars Limited, the Industries Department has enlisted the help of experts and consultants to propose strategies for the revival mission, reports Telangana Today.
The Nizam Deccan Sugars Limited (NDSL) is a joint venture public limited company, with shares held by Deccan Paper Mills Limited (DPML) and Nizam Sugars Limited (NSL) in a 51 per cent and 49 per cent ratio, respectively.
According to the news report by Telangana Today, NSL operates three units: Nizam Sugar Factory (NSF) in Shakkarnagar, Bodhan; NSF in Metpally, Jagityal; and NSF in Medak, along with a distillery and cogen unit in Bodhan. NDSL commenced operations in the 2002-2003 season but ceased in December 2015, subsequently filing an insolvency petition with the National Company Law Tribunal (NCLT) in Hyderabad. This resulted in litigation. Apart from this, NDSL also sought a consortium of banks for Time Settlement (OTS) of its debts, which has reportedly agreed to mutually agreed terms for OTS with the lenders.
Revival of the NSL units with the help of a new equity partner is now planned by the Industries Department. With a view to this, it has been decided to engage expert and consultant services toward making a Comprehensive Revival Road Map for the three closed units, including the distillery and cogen unit. The consultants are expected to suggest recommendations on preparing and maintaining a legal review, asset valuation, and technical assessment of the plants. Technical and financial proposals for revival need to be submitted by the consultants for NSL units.
The broad mandate of the consultants is also extended to deal with the legal entanglements and other issues in connection with the Joint Venture Agreement with DPML. They are also to prepare the valuation report for NDSL units, showing detailed justification for the valuation of each category of assets.
The state government has already formed a cabinet sub-committee chaired by Industries Minister D Sridhar Babu. The committee members, along with the Industries Minister, visited the factories in February of this year and engaged with the farmers.
