Industries department initiates revival of Nizam Sugars Limited units
The Nizam Deccan Sugars Limited (NDSL) is a joint venture public limited company, whose shares are held by Deccan Paper Mills Limited (DPML) and Nizam Sugars Limited (NSL), a government company, in 51 percent and 49 percent ratio respectively.
Hyderabad: In a move aimed at the long awaited revival of units of the Nizam Sugars Limited, the Industries department has invited experts and consultants to suggest measures to be adopted for the revival mission.
The Nizam Deccan Sugars Limited (NDSL) is a joint venture public limited company, whose shares are held by Deccan Paper Mills Limited (DPML) and Nizam Sugars Limited (NSL), a government company, in 51 percent and 49 percent ratio respectively.
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The NSL has three units, including Nizam Sugar Factory (NSF), Shakkarnagar, Bodhan, NSF, Metpally, Jagityal and NSF, Medak and a distillery unit and cogen unit at Bodhan. The NDSL had started its operations from 2002 to 2003 season and laid off in December, 2015 and filed an insolvency petition in National Company Law Tribunal (NCLT), Hyderabad. Subsequently, a legal litigation also started. This apart, NDSL approached the consortium banks for One Time Settlement (OTS) of its dues. NDSL and lenders reached mutually agreed terms for OTS.
The industries department is now planning to revive the NSL units by finding a new equity partner. To this effect, it is seeking assistance of experts and consultants for preparation of a Broad Revival Road Map for the three closed units including the distillery and cogen unit. The experts or consultants would have to suggest measures in different aspects, including legal review, valuation of assets and technical assessment. They would have to submit technical proposal and financial proposal for the revival of NSL Units.
The broad outline for the experts or consultants would be to suggest measures on addressing legal complications and interconnected issues in Joint Venture Agreement entered with Delta Paper Mills Limited (DPML). Prepare a Valuation Report of NDSL Units with detailed justifications supporting the valuation of each category of assets.
Assess the plant and its machinery condition and prepare the estimates for replacements and repairs to keep the plant in running condition as the plant and machinery was idle from 2015 onwards. In addition to this, they would have to guide on settlement of 51 percent of equity held by the DPML in Nizam Deccan Sugars Limited (NDSL) with due audit by a Chartered Accountant.
The State government has already constituted a cabinet sub-committee with Industries Minister D Sridhar Babu as its Chairperson. Along with the Committee members, the Industries Minister had visited the factories in February early this year and interacted with the farmers.
