No reserve price was kept for sale of carton factory machinery: Govt

Shimla: Responding to the CPIM’s charge of selling the machinery of Gumma carton factory (AIPIL) at throw away prices, Madan Chauhan, MD of AIPIL today said that there was no reserve price for the sale of carton plant and was not kept at Rs. 28.33 crore as reported in the media.

He clarified that 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 was 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 had 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 was sold for Rs. 1.08 crore plus 5% VAT to the highest bidder.

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