Patna, Jan. 12: In an effort to revive the sick sugar industries in the state, the Bihar government today signed a memorandum of understanding (MoU) with public sector company Indian Potash Ltd to start production at Bihar State Sugar Corporation’s mill in Motipur sugar factory in Muzaffarpur.

The mill has been closed since 1996. The memorandum of understanding was signed in the presence of Awadhesh Prasad Kushwaha the sugarcane minister, C.K. Mishra the sugarcane department principal secretary, Jai Mangal Singh the sugarcane commissioner, Sudhir Relan executive director Indian Potash Ltd and other senior officials of the department.

Kushwaha said: “Of 15 sick sugar mills of the corporation, we have signed MoU for six sugar factories including the Motipur sugar factory at Muzaffarpur. Indian Potash Ltd will set up sugarcane-based industry which will start production in less than two years. With this 12 units were either running or would be on a revival path in the state. Two sugar factories at Sugauli (East Champaran) and Lauriya (West Champaran) which have been leased to HPCL for revival around two years ago would start operating from end of January 2011.Sugarcane department principal secretary, C. K. Mishra said: “We have nine more such sick units of the corporation. We invited bids thrice but still did not find an appropriate bider for these remaining sugar firms.”

Probably they are not viable for setting up big sugar factories because of space constraints as these firms have just 27 to 35 acres of land.”

Mishra said: “We are thinking on other alternatives.”