Mehran Sugar Mills Limited has announced the initiation of the winding-up procedure for its wholly owned subsidiary, Mehran Energy Limited (MEL), following the company’s inability to proceed with its planned 26.5 MW bagasse-based co-generation project.
The company disclosed this through a notice sent to the Pakistan Stock Exchange (PSX) on Thursday.
“In accordance with the decision of the Board of Directors in the meeting held on 28 July 2025, we have initiated the winding-up procedure of our wholly owned subsidiary Mehran Energy Limited (MEL),” read the Mehran Sugar Mills’ notice to the PSX.
Mehran Sugar Mills explained that its energy arm was established in 2016 with a paid-up capital of Rs 40 million to set up a high-pressure co-generation project. However, the project faced significant setbacks after the Central Power Purchasing Agency-Guarantee (CPPA-G) refused to sign the necessary Implementation Agreement (IA) and Power Purchase Agreement (PPA), which halted further progress.
This decision reflects the challenges faced by the company in securing the required agreements for the project’s advancement.
Mehran Sugar Mills was incorporated as a public limited company in December 1965 under the repealed Companies Act, 1913. The company is principally engaged in the manufacturing and sale of sugar and its by-products.
