Punjab to revive three cooperative sugar mills

If everything goes well, the three closed cooperative sugar mills in Punjab’s Tarn Taran, Zira and Ajnala districts would be revived on a build, operate, own and transfer (BOOT) basis. The Punjab government has already given its nod to the revival plan.

Speaking to Business Standard, a senior Punjab government official said the revival plan included increasing the current crushing capacity which was low, setting up of cogeneration plant, revamping the mill with forward and backward integration. It also involves promoting sugarcane cultivation in the particular area.

These sugar mills have very low crushing capacity and it is certain that the private players will increase their crushing capacity to make it profitable. Sugar mills at Zira and Ajnala has crushing capacity of 2,500 tonnes per day each while installed capacity of Sugar mill at Tarn Taran is 1,250 tonnes.

 

It is worth noting that the state has 15 co-operative sugar mills in the state, of which six have been closed down. The total installed crushing capacity in all these 15 sugar mills is estimated at 28,266 tonnes per day. The installed capacity of the six closed mills is 12,750 tonnes per day.

On being asked about the other three closed sugar mills, he said, “The two sugar mills at Jagraon and Buddhlada would be handed over to PUDA (Punjab Urban Development Authority) for liquidation under Optimum Utilisation of Vacant Government Land scheme (OUVGL). The machinery would be sold and the land would be used commercial purposes. The decision regarding Faridkot Sugar mill will be taken shortly.”

Earlier, the running sugar mills in the cooperative sector had signed MoUs with various companies for setting up cogeneration power plants in these mills. The sugar mills will get a due percentage from the sale of electricity.

According to Sugarfed (an apex body of cooperative sugar mills in the state) , the path of revival and synergy has been carved out by attracting private investment of more than Rs 1,000 crore in the nine running mills. All the mills have signed MoU with the private parties for setting up of cogeneration plants in the mill premises on BOOT basis. And, after a boot period, the cogeneration plants set up by private parties will belong to the sugar mills free of cost. All these running mills will be e modernised/upgraded with the funds being provided by the private parties. During the first phase of revival of running mills approximately, 150 Mw of electricity could be generated by the cogeneration plants which will be set up by the private parties.