Project to modernise sugar mills

The Tamil Nadu government has launched a Rs 1,125.63 crore programme to modernise 12 sugar mills and co-generation of 183 megawatt (Mw) power. The programme was launched at the weekend.

A sum of Rs 849.36 crore was sanctioned for installing cogeneration power units in 10 cooperative sugar mills and two public sector mills and the remaining Rs 276.27 crore for the modernisation of the mills, said the chief minister in his address.

He also inaugurated works at various mills simultaneously in Namakkal, Villupuram, Madurai and Thanjavur districts through videoconferencing from the secretariat here.

“The state government is committed to the welfare of cane farmers, the government sanctioned the payment of Rs 2,000 per tonne of sugarcane as procurement price this year,” he noted.

Of the proposed 183 Mw, 63 Mw was earmarked for the use of the mills and the remaining 120 Mw for the state. On completion of the co-generation component in 18 months, the Electricity Board would get power from the mills.

Besides, the programme would benefit nearly 100,000 cane farmers and provide employment to 1,200 persons, he added.

Three of the 10 cooperative sugar mills, in Villupuram district, would have the installed capacity of 48 Mw. 

They would generate revenue to the tune of Rs 72.80 crore annually through the sale of power and within eight to nine years they could recoup the investment.

M S Shanmugham, Thanjavur district collector added, the mill earned a profit of Rs 30 crore last year.

Madurai Collector C Kamaraj, added that the Rs 110.28-crore modernisation package for National Sugar Mill, Alanganallur will increase the operations of the mill which has a crushing capacity of 2,500 tonnes of sugarcane a day. Power generation at the mill, would make its financial position comfortable, he added.