Pragati Nagar Carton Factory Machinery sold for Rs. 1.13 crore

SHIMLA--The News item published in a session of press regarding sale of carton plant of Agro Industrial Packaging India, Limited at Pragtinagar in district Shimla below reserve price is not correct. Managing Director of the Agro Industries Packaging India Limited Shri Madan Chauhan clarified that the reserve price for sale of carton plant was not kept at Rs. 28.33 crore as mentioned in the newspaper. In fact there was no reserve price, he added.

He further clarified that tenders had been invited for sale of plant and machinery and as per tender document the original cost of machinery was mentioned as Rs. 24.88 crore, which in fact was the cost at the time of purchase of machinery in 1990. Out of it, cost of CIF was Rs. 9 crore, Import Duty Rs. 6 core and the cost of machinery was increased by Rs. 10 crore due to devaluation of Indian Rupee vis-à-vis yen, as the machinery was imported by availing foreign currency loan and due to devaluation of Indian Rupee the cost increased substantially.

The Managing Director further clarified that tenders had to be floated for the sale of this plant and machinery as in the first tender, only one party and participated who had offered price of Rs. 77.78 lakh which was not accepted and as such fresh tenders were invited in which five parties had participated and based on transparent tendering system the plant and machinery had been sold for Rs. 1.08 crore+ 5% VAT i.e. total Rs. 1.13 crore to the highest bidder where as written down value of the machinery is less than Rs. one crore.