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`No stay on lease of sugar mills'

LUCKNOW NOV. 26. The Uttar Pradesh government today clarified that the Allahabad High Court had not stayed the process of leasing out 24 State sugar mills even as the last date for submission of tenders for the same expired this evening.

The Chief Secretary, A.P. Singh, said here that the State government had already given an undertaking before the court not to finalise the leasing of these mills till the next date of hearing on December 17. ``But there was no stay on the proceedings as has been reported in a section of the media,'' he asserted.

He said the Advocate-General, Virendra Bhatia, had yesterday pleaded before the Lucknow bench of the Allahabad High Court that the matter be taken up after two weeks to enable him to ascertain full facts in the matter and file an affidavit, if needed.

Mr. Bhatia also assured the court that till the next date of hearing, the leasing out of sugar mills would not be finalised.

A section of the media today reported that the Lucknow Bench had stayed the proceedings of leasing the sugar mills to private sector till December 17 on a writ petition filed against the government's decision by the UP Rajya Chini Nigam Karamchari Association and others.

The Chief Secretary also clarified that the BIFR had agreed to the government's proposal to lease out mills on November 18 last and the proposal had been sent to the operating agency, IFCI. ``State officials had a meeting with the IFCI on November 24 and it is likely to send its report soon to the BIFR,'' he claimed.

The State Government had placed advertisements in newspapers on October 26 inviting tenders for divestment of 24 sugar mills. A formal government order was issued on October 29 for the same.

The UP Development Council had cleared the proposal on November 9 last. --UNI

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