Patna, Dec 14: Over two dozen companies from across the country are keen on setting up sugar factories in the state.

The firms have purchased 44 tender documents for taking part in the bidding for nine sugar factories owned by Bihar State Sugar Corporation.

Sugarcane industry minister Awadhesh Prasad Kushwaha told The Telegraph: “The state government’s consistent endeavour to attract investors to the sector has finally started paying dividends. They are showing confidence in our policy. All these factories, if leased out properly, can start production within five years.”

“The sugarcane industry department has come out with a request for qualification (RFQ) inviting bids from prospective bidders. The aim is to lease out the sugar factories. The last date to purchase the tender document was November 30. These companies would submit their bids latest by December 22. The processing of these bids would take another week to 10 days before the bids are opened,” an official in the department said.

Despite three successive bids, the government could hand over only six of its 15 mills, owned by the corporation, to private parties on a lease term.

SBI Caps, the consultant of the government, has made the valuation and fixed floor price for bidding of all the factories. The consultant had said it was not viable to use the rest of the units as sugar factories because of space constraint. It suggested that the units be used for other industrial purposes. On the factories that do not have adequate space, Kushwaha said the government has decided that a sugar factory with over 5,000 tonnes crush per day capacity would be allowed to set up their plant. If a sugar factory does not have the minimum capacity, the bidder will be allowed to set up their firm for other industrial purpose or commercial use.

“It has been seen that a sugar factory that does not have the minimum 5,000 tonnes crush per day capacity is not economically viable,” the minister said.