Riga sugar mill in Sitamarhi set to reopen by year-end

Hopes for reopening of the debt-ridden Riga sugar mill in Sitamarhi have revived after Karnataka-based Nirani Sugars Limited recently evinced its interest before the National Company Law Tribunal (NCLT) to re-run the factory, people familiar with the matter said.

According to officials of the state sugarcane department, Nirani group has placed the highest bid of ₹86.5 crore before the NCLT (National Company Law Tribunal).

The Riga mill’s former owner, Dhanuka group, had shut down its operations in 2020 and insolvency proceedings were initiated in 2022-21.

In a post on social media site “X” a few days ago, Janata Dal (United) member of Parliament from Sheohar, Lovely Anand, had said that the Nirani Sugars owner Murugesh R Nirani has promised that Riga sugar mill would be brought back in operations by December this year.

Spread on 104 acres of campus, Riga sugar mill used to cater to around 50,000 farmers and engaged an equal number of supporting staff and workers for sugarcane crushing, processing and marketing of the product.

State sugarcane commissioner Anil Kumar Jha said it was indeed heartening news to see smoke bellowing out the chimney of the closed factory. “Our main concern was to ensure that the farmers, who are owed ₹51 crore in arrears by the sugar mill, get their payment within a year the mill is restarted. The state government was a party in the case at the NCLT and its appellate tribunal and contended that the mill is restarted,” Jha said.

In a statement, Nirani Sugars Limited said, “We are proud to announce the acquisition of Riga Sugar Company Limited, located in Sitamarhi, North Bihar, India. As one of the nation’s most historic sugar factories, the unit embodies a rich industrial legacy. This acquisition aligns with Nirani Sugars Limited’s long-term vision of strengthening its presence in the agro-industrial sector, fostering sustainable and diversified growth, and promoting a circular economy that directly benefits farmers and supports the development of rural communities, while preserving the heritage of Indian sugar industry.”

The assets acquired by Nirani group include a sugar plant with a crushing capacity of 5,000 TCD (tonnes of cane per day), a distillery capacity of 45 KLPD (kilo litres per day) and a co-generation power plant with an installed capacity of 11 MW.

Local residents are anxiously waiting for the revival of the sugar mill.

“The mill, which used to produce 5000 bags of sugar per day, today stands as an example of decline of industries in Bihar. It had workforce of 800 at the time of closure. Nearly 200 families lived outside and people of the area were attached to it directly or indirectly,” said Niraj Jha, the chief security officer, who visits the closed mill every day.

“Our hopes are high from central government,” said Nand Kishore Shah, a local resident, adding that many people have migrated out to earn bread and butter.

In December last year, chief minister Nitish Kumar had directed the authorities concerned to take all possible steps for reopening of Riga sugar mill.