To Windup or to Run

Abstract

The sugar group of mills comprised of 67 mills, 37 of them belonging to the UP State Sugar Corporation (UPSC) and 32 belonging to UP State Cooperative Sugar Mills Federation (UPSF). Most of the mills were making losses in 1998 99. Indeed, (UPSC) had been referred to the Board of Industrial and Financial Reconstruction (BIFR), having eroded its net worth. (BIFR quasi judicial body, which was created to facilitate rehabilitation or winding up of sick industrial enterprises). The Secretary Sugar and Cane Development, government of U. P., was wondering what action should be taken in respect of the sugar mills belonging to both the U. P. S.C and U.P.S.F. UPSC was created in early 1970s by taking over the sick private are mills, by the garment of the speed to protect the livelihood of the people are slated with data; namely the staff of the mill is to start many mills were having obsolete technology, which could not be updated due to lack of funds or inappropriate allocation of the resources...