Hyderabad: To bring Nizam Deccan Sugars Limited (NDSL) back to life, the state government has chosen Capital Fortunes, a private firm, as its consultant. According to officials, the firm is expected to submit a detailed report by March next year, reported the Times of India.
Capital Fortunes is assessing the company’s assets, including its land and equipment. The evaluation aims to determine whether the machinery in the factories can be repaired and reused or if the government will need to invest heavily in new equipment.
The company has been inactive for years and has significant outstanding loans with banks. Of the ₹190 crores owed, ₹160 crores has already been cleared in three instalments. The remaining ₹30 crore is set to be paid this September, which would settle the debt entirely.
However, the private company running the factory under a joint venture with the government has said it cannot restart operations even after the debts are cleared. Discussions are ongoing regarding whether the government should take over the operations or transfer them to another private company.
It is considered that instead of opening all the closed factories at once, the government should think of starting one factory either at Metpally or Bodhan so that these problems could be controlled to some extent. There is also a proposal for promoting ethanol instead of traditional sugar given present market conditions.
Once a leading name in the industry, Nizam Sugars had expanded to seven units in Medak, Nalgonda, and Anantapur districts. Privatised in 2002 after years of losses, privatisation did not succeed in saving the business either, and now, the factories have been shut in 2015, which saw job loss.
