Govt selects consultant to look at ways to revive Nizam Sugars

Hyderabad: In a step towards reviving Nizam Deccan Sugars Limited (NDSL), the Congress govt has selected Capital Fortunes private company as a consultant. Govt sources indicated that a final report will be submitted by March next year.
Capital Fortunes is tasked with assessing and providing a valuation of Nizam Sugars’ assets including the land owned by it. Currently, the valuation of the company’s assets is underway.
Data is being collected to determine whether the machinery in the factories can be repaired for continued use or if significant expenditure is needed for new purchases.
The closed factories have outstanding debts with banks. As part of a one-time settlement, approximately 190 crore was due, of which 160 crore was paid in three instalments, and another 30 crore is scheduled for payment this Sept, which would relieve the company of its debt.
The private company that previously managed the factory in the joint venture with govt has stated it cannot resume operations, even after settling the bank dues. There is discussion on a take over by govt or alternatively there is also a proposal for transferring the operation to another private company.
It is estimated that reopening all closed units simultaneously could pose challenges, so the govt is thinking of an initial reopening of either the Metpally or Bodhan unit.
There is also consideration of using Nizam Sugar units for ethanol blending rather than traditional sugar production in the current climate.
Over time, the industry expanded to include seven units across the combined state, located in the districts of Medak, Nalgonda, and Anantapur. The industry was privatised in 2002 after incurring continuous losses. Unfortunately, it could not recover from these losses, leading to the management of Nizam Sugar Factory announcing layoffs in 2015.