KARACHI, Sept 16: The Sindh Sugar Corporation has decided to liquidate Thatta and Dadu sugar mills and will soon appoint a liquidator to dispose of assets worth Rs1,300 million.

The state-owned mills became sick about a decade ago.

The assets, including plant and machinery, will be auctioned to make payment to about 5,200 creditors, including National Bank of Pakistan and National Development Leasing Corporation (NDLC). The total liabilities of the mills stood at Rs3,100 million.

Sindh Sugar Corporation Chairman Murli Manohar told Dawn on Saturday that the corporation was trying to get the liquidation process completed at the earliest so that the amount collected from the sale of assets could be distributed among the creditors on pro rata basis.

Earlier the corporation blocked a move by the creditors (NBP and NDLC) to sell the mills at a throwaway price. The said parties filed a petition in the Banking Court to get their dues. The court accepted their plea and invited bids for the sale of mills.

Two bids amounting to Rs50 million and Rs35 million for Thatta and Dadu sugar mills, respectively, were received against their total assets of Rs1,300 million.

The corporation, however, filed a petition in the Sindh High Court to block the sale bid of the mills at a price far less than the assets. The learned court accepted the corporation’s plea and directed the owners to liquidate the mills at the earliest and arrange payment to the creditors.

Meanwhile, sources at the ministry of industry said the Sindh Sugar Corporation, set up in 1976 to look after the affairs of the state-owned sugar mills, will be disbanded after their disposal. However, before the winding up of the corporation its chairman will be rewarded for his efforts to save the precious assets of the mills being sold at a throwaway price.

Earlier, the Sindh chief minister on the recommendation of the corporation directed that 1,800 workers of the defunct mills rendered jobless should be reabsorbed in various government departments.