The state government has extended the date for filing of financial bids by private investors till 2 pm on September 16 in connection with the divestment of 31 sugar mills of the public sector UP State Sugar Corporation.
In July, five companies — Gammon India, Dalmia, Era, Chaddha and Noida-based Uflex — had submitted expressions of interests (EoIs) in accordance with the modified terms and conditions. On Monday, among the five companies, only Gammon India filed the financial bid.
Gammon India has emerged as the frontrunner to acquire the public sector unit. According to a senior government official: “If the other four companies fail to file
financial bids by September 16, the government will consider the price quoted by Gammon India.”
The official added that on September 6, Gammon India had sought permission to allow one of its 100 per cent-owned subsidiary to take part in the bidding process, which the government had accepted. He, however, claimed that the price quoted by Gammon India should not be lower than the reserve price worked out by the valuation experts hired by the government.
“Even if the price quoted by Gammon India is lower than the reserve price, the government may offer to the company if it was willing to quote the price higher than the reserve price,” the official said. “If the single bidder, Gammon India, is willing to quote a higher price than the reserve price, then the government may consider its bids,” he added.
