Consultant will help revive ailing Punjab sugar mills

The decision has been taken on the directives of the Punjab government to swiftly implement the revival plan for these closed mills, according to a senior official of the Federation of Cooperative Sugar Mills Ltd (Sugarfed).

In Punjab, there are 15 co-operative sugar mills, of which six are closed. They are located in Faridkot, Tarn Taran, Ferozepur, Jagraon, Patiala and Mansa. The accumulated losses of these mills stand at Rs 249.50 crore.

 

Under the plan, Sugarfed had proposed transferring these closed sugar mills in the co-operative sector on lease for 20-25 years to private parties to promote sugarcane cultivation and develop the industry in the state, he said.

"The consultant will be entrusted with the job of valuing the assets of the six closed mills and then determining the price at which the mills could be leased to private players, besides setting the terms and conditions of the agreement," he added.

The SAD-BJP government overturned the decision of the previous Congress government, which had decided to sell the closed co-operative sugar mills to private parties.

Sugarfed has also prepared a modernisation-cum-revival plan for other nine running co-operative sugar mills with an outlay of Rs 865 crore, which are situated in Morinda, Nawanshahar, Ludhiana, Nakodar, Fazilka, Bhogpur, Gurdaspur, Batala and Ajnala.

However, the Punjab cabinet is yet to approve this plan. According to the proposed plan, the sugar producing capacity of these nine sugar mills will be hiked considerably along with setting up co-generation power units in these mills with an aim to make sugar mills viable.

"The sugar production of these nine sugar mills varies between 1,000 tonnes and 2,500 tonnes crushed per day per unit. However, the viability of a sugar mills cannot be obtained until its capacity is increased to 5,000 tonnes crushed per day. Therefore, we will be raising the capacity to this level under this plan," he said.

In addition, emphasis would be laid on setting up co-generation power plants of 8-10 Mw in each mill at Rs 675 crore, he said.