With the intention to revivify and expand the agro-based industries in Bihar, state-run Hindustan Petroleum Corporation Limited (HPCL) has signed a memorandum of understanding (MoU) with the Bihar State Sugar Corporation Ltd and Bihar government.

The MoU was signed to take over sugar mills situated at Sugauli and Lauriya in East and West Champaran for 60 years lease (that could be extended for another 30 years).

Mr. Arun Balakrishnan, HPCL CMD, called it an innovative decision and added that the company (HPCL) is branching out in other trade by not only entering the sugar production, but of ethanol too.

The HPCL would invest Rs 600 crore for renewing two sugar mills in addition to a distillery plant located at Lauriya.

Mr. Balakrishnan said, “This is the beginning of a larger investment programme. We will invest Rs 1,000 crore in Bihar in the next three years.”

He also said that these sugar mills would be functional within the next two years.

Moreover, the CMD also made announcement about the opening of a big oil terminal with a total investment of Rs 250 crore at Bihta in Patna region to overcome oil shortage problem.

Bihar chief minister Nitish Kumar, who was present during the MoU signing programme, stated that 50 acre of land will be sanctioned to the company in Bihta near the railway line.

He said that HPCL should announce a date for laying its foundation shortly.

Mr. Kumar said, “It was a grand beginning as the gate which was closed has now opened after three difficult years during which the government made serious efforts for the revival of closed sugar mills.”

He said that UP’s core competence was agriculture and hence the government required to set up agro-based industries as the state has vast potential to prosper.

Nitish urged the petroleum department to seriously mull over the opening of petro-chemical complex at Barauni and even promised to allot 1,100 acres of land for the project.

Union petroleum secretary R S Pandey said Bihar is growing and one of the growth index was petroleum usage that he said has grown to 12% to 13%.

He said an oil exploration work at Samastipur was going on.

JD(U) MP N K Singh said that the government has made a target of private investment of Rs 150,000 crore in its 11th five year plan document.