Sugar factories keen to set up bagasse-based power projects

With Gujarat Electricity Regulatory Commission (GERC) fixing a tariff for procurement of power to be generated from bagasse, a remnant from the crushed cane, co-operative sugar factories in the state seem to be keen on developing bagasse-based power projects.

At least two sugar factories namely Madhi Sugar and Narmada Sugar have already set the ball rolling for to establish bagasse-based power projects in Gujarat. Industry players expect more sugar factories to follow suit.

"Maharashtra Industrial and Technical Consultancy Organisation Ltd. (MITCON) has prepared a project report for Madhi Sugar Factory. We wish to set up 14 Mw and 12 Mw generation units in two phases," said Dilipbhai Bhakt, chairman, Madhi Sugar Factory based in South Gujarat.

Narmada Sugar is yet another player who has plans to put up 67 Mw bagasse-based power project in Rajpipla of Narmada district. "Narmada Sugar factory has also brought in an American company called Nitas for developing the project," sources privy to the developed informed.

Gujarat has more than two dozen sugar factories run on co-operative basis. "Sugar factories in the state can collectively produce 450 Mw of power from bagasse-based power plants," added Mansinhbhai Patel, chairman, Gujarat State federation of Co-operative Sugar Factories Ltd.

In order to promote power generation from bagasse in Gujarat, GERC, through its recent tariff order, has determined a tariff of Rs 4.55 per unit for the first 10 years of supply and Rs 4.90 per unit for the period from 11th year to 20th year. The newly fixed tariff is applicable to bagasse-based power projects to be commissioned before 31 March, 2013.

"Southern Gujarat sugar factories have potential to generate 250 Mw. The new tariff for bagasse-based power looks attractive and more and more sugar factories are likely to establish their projects," said Dilipbhai Bhakt.

With a view to provide information to sugar factories about the bagasse-based power project, the sugar federation of the state has organised a meeting of sugar factory with a consultant on 22 June, 2010.