May 28, 2010 1:01 PM

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SC okays UP sugar mills divestment

The Supreme Court on Friday gave the go-ahead to disinvestment in 11 sugar mills owned by the Uttar Pradesh government. A bench of the apex court said in its order that that the Uttar Pradesh government can go ahead with the bidding process as per schedule on 3 of next month but the outcome would be subject to final adjudication. It said any action taken by the state government shall be subject to the final outcome of the petition. The Court's direction came in response to a petition challenging the bidding of 11 operational sugar units in the state. The UP government, in 2007, embarked on a drive to privatise sugar mills, but with not many takers for its loss-making units decided to sell the 11 operational units first. However, the decision to privatise operational units has since run into a legal tangle, stalling the disinvestment process.

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