The Tamil Nadu government has launched a Rs 1,125.63 crore programme, which includes modernisation of 12 sugar mills and cogeneration of 183 Megawatt (Mw) of power.
A sum of Rs 849.36 crore has been sanctioned for the installation of cogeneration power units in 10 cooperative sugar mills and two public sector mills while the remaining Rs 276.27 crore is for the modernisation of the mills, chief minister M Karunanidhi said on Saturday.
Work on various mills was launched simultaneously in Namakkal, Villupuram, Madurai and Thanjavur districts by him through videoconferencing from the Secretariat here.
“The state government is committed to the welfare of cane farmers. The government has sanctioned the payment of Rs 2,000 per tonne of sugarcane as procurement price this year,” he said.
Of the proposed 183 Mw, the mills would use 63 Mw while the remaining 120 Mw would be for the state. On completion of the co-generation component in 18 months, the Tamil Nadu 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.
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Three of the 10 cooperative sugar mills, located in Villupuram district, would have an installed capacity of 48 Mw. They would generate a revenue of Rs 72.80 crore annually through sale of power.
Thanjavur district collector M S Shanmugham said 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 the National Sugar Mill in Alanganallur would increase the operations of the mill, which has a crushing capacity of 2,500 tonnes of sugarcane a day.