Odisha to review distillery plant proposal of Nayagarh Sugar

Asks excise commissioner to review proposal due to delays

Due to considerable delay in setting up of a distillery plant of Nayagarh Sugar Complex Ltd (NSCL), the state government has ordered the Excise Commissioner to review the project proposal.

“Government after careful consideration have been pleased to observe that the proposed distillery unit has not made any real progress, though permission was given during 2011. It is, therefore, requested to kindly review the matter and furnish a detailed report to this department for taking further follow up action at this end,” said the state Excise Department in a letter to the commissioner.

NSCL was granted permission for 25,000 ltr rectified spirit plant near its sugar factory in Nayagarh in 2011. However, the delay in commissioning of the project was due to lengthy process of environment clearance and other issues, said the company sources.

“We received environmental clearance only in 2013 and construction work of the distillery unit has begun. We had to stop the construction work from October due to Phailin storm and labour unavailability thereafter,” said Trailokyanath Mishra, chairman, NSCL.

The company said, the permission for construction of the plant, the term of which had expired, is yet to be revalidated.

“We are also awaiting the permission for the proposal of a bottling unit,” said Sabyasachi Mishra, managing director of the company.

The 1,250 tonne per day cane crushing sugar complex has proposals to establish a distillery unit of 25,000 ltr per day capacity and a 4,000 unit bottling factory with an investment of Rs 50 crore. The distillery unit will produce rectified spirit, extra neutral alcohol and ethanol, which will be used as industrial alcohol, liquor and fuel, respectively.

Mishra had taken over the sugar factory, which was earlier run as a cooperative unit, from the government in 2004. Though he has paid the full amount towards the cost of the factory, the land title of the factory is yet to be transferred.

“The government is yet to hand over the land title. It is causing difficulty in raising working capital as well as fund for value added products,” he said.

The Rs 50 crore project will be implemented via 70:30 debt-equity ratio. The company officials said, if the banks approve their loan proposal, then the plant will be ready by 2015. “We expect the project to be complete in 18 months after funding,” said the chairman of the company.