Bhubaneswar, Jan. 30: The cabinet sub-committee on disinvestment has decided to invite a fresh tender for the privatisation of public sector undertaking Hirakud Industrial Works if Calcutta-based Varsha Fabrics fails to make an upfront payment of Rs 5.25 crore within a week. The company was also asked to pay Hirakud Industrial’s unsecured loans worth Rs 50 lakh by the same time.

The sub-committee, which met here yesterday under the chairmanship of chief minister Naveen Patnaik, gave a week’s time to Varsha Fabrics to pay the amount for acquiring Hirakud Industrial. The state government had put the company on the block last year.

Hirakud Industrial fabricates and sets up transmission line towers to transmit and distribute power. It also manufactures aluminium conductors at its facility at Hirakud in Sambalpur district.

State finance minister Prafulla Ghadei said last February, the sub-committee floated a tender for selling off the loss-making Hirakud Industrial and Varsha Fabrics emerged the highest bidder.

The company had promised to clear Hirakud Industrial’s loans at one go. However, it is yet to fulfil its commitment.

“We have asked the company to pay the outstanding amount within seven days. If it fails, there would be re-tendering for Hirakud Industrial,” Ghadei said.

The sub-committee also decided that the assets and business of the state-owned Orissa Co-operative Spinning Mill in Bargarh district will be transferred to New Delhi-based Earthtech Enterprises Limited for Rs 5.4 crore.