UP sugar mills to add cogeneration, ethanol plants

Sugar, bagasse, ethanol and molasses are different byproducts of sugarcane extracted during / after crushing

Seeking to shed the tag of inefficiency, the cooperative sugar mills in Uttar Pradesh are planning to modernise their complexes by adding power cogeneration and ethanol plants.

Such forward linkages would not only generate additional revenue for mills, but also facilitate optimum utilisation of fixed assets. Ethanol plants have been proposed in at least four cooperative sugar mills, while power cogeneration plants would be installed at two units.

According to official sources, the proposal to set up bagasse-fired cogeneration units in Snehroad and Ramala cooperative sugar mills is pending with the state public investment board (PIB). Sugar, bagasse, ethanol and molasses are the different byproducts of sugarcane extracted after crushing.

The proposed cogeneration projects at Ramala and Snehroad are estimated to cost about Rs 150 crore and Rs 80 crore, respectively. For this purpose, the sugarcane crushing capacity of Ramala unit would be augmented to 5,000 tonnes crushed a day (TCD).

“In Snehroad mill, we propose to generate 15 Mw of energy, of which about 10 Mw would be supplied to grid, while five Mw would be used to run the mill,” UP Cooperative Sugar Factories Federation Limited Managing Director B K Yadav told Business Standard.

After PIB nod, bids would be invited for the supply of turbine. This process is likely to take some time and the power plants would be up and running latest by the next crushing season. Presently, these mills sell bagasse to paper mills.

Other mills have also been directed to economise and save bagasse for similar projects.

Meanwhile, ethanol units have been planned at Nanauta (Saharanpur), Anupshahr (Bulandshahar), Nanpara (Bahraich) and Kayamganj (Farrukhabad) units.“We run distilleries at these units to produce rectified spirit. Now, we want to set up ethanol plants,” Yadav said. The ethanol prices are quite remunerative. Currently, 23 cooperative sugar mills and 95 private units are functional in UP.