Power purchase rate from units run by coop sugar mills hiked

Maharashtra Government has hiked the rate of electricity purchased by it from captive units of cooperative sugarcane mills which use bagasse (crushed sugarcane residue) to generate power.
Speaking to reporters at Mantralaya (secretariat) here today, Minister for Cooperation Chandrakant Patil said the power purchase rate has been hiked by 32 paise per unit.
At present, the government pays Rs 6.27 per unit of power purchased from the mills and the rate has been raised by 32 paise to Rs 6.59 a unit, he said.
The move will mean an additional burden of Rs 53 crore annually on the state exchequer, he said.

Patil rejected suggestions that the move favours cooperative sugar mills and said instead it was a pro-farmer decision, and would also help in meeting the energy requirements of the State.
The decision would enable the mills to pay Fair and Remunerative Price (FRP) to the sugarcane-growing farmers, the Minister said.

Also, by buying power from bagasse-based units, the Government is promoting non-conventional sources of energy, Patil maintained.
Out of the 114 cooperative sugar mills in the State, 101 are in operation. The 114 cooperative sugar mills have a combined captive generating capacity of around 199 MW.
The mills currently in operation have a total generating capacity of 143 MW.

Bagasse is the fibrous matter that remains after sugarcane or sorghum stalks are crushed to extract their juice.