The Bihar state government plans to restart at least eight of the 15 closed down sugar mills in the state, collaborating with private players on a long-term lease.

The government move comes after seeing the diagnostic study done by SBI [Get Quote] Caps. On government request SBI Caps studied 15 state-owned closed down sugar mills. It recommended re-opening of eight mills, saying they were viable units.

The government plans to invite private bids to revive these closed but viable units, sources said. The eight units open for private bidding are Banmakhi, Goraul, Hathua, Lauriya, Motipur, Warsliganj, Lohat and Sugauli mills.

The government does not want to go for outright sale of these units to avoid controversies. SBI Caps will also assist the government in the private bid exercise.

Increasing loss, labor problems and mismanagement reportedly caused the closing down major sugar mills in the state, owned by Bihar State Sugar Development Corporation.