UP govt announces revival package of Rs 1,100 crore for two sugar mills

Defunct mills in Basti and Gorakhpur districts to be developed as integrated complexes

Uttar Pradesh government on Tuesday said it will spend Rs 1,100 crore to revive two defunct state-owned sugar mills in the eastern part of the state.

These mills in Munderwa and Pipraich in Basti and Gorakhpur districts belong to will be developed as integrated sugar complexes comprising sugar factory, power cogeneration plant and ethanol/refinery unit.

A cabinet meeting headed by chief minister Yogi Adityanath this afternoon decided to help the mills owned by UP State Sugar Corporation Limited (UPSSCL).

Suresh Rana, sugarcane development minister, said the government will give Rs 438 crore and Rs 657 crore as loans to UPSSCL for reviving the Munderwa and Pipraich sugar mills.

Both plants will be made operational from the upcoming 2019-20 crushing season. From 2020-21, the plants will be equipped with modern technology to produce sulphur-free sugar.

“There is huge demand for sulphur less sugar in the market and it sells at a premium of Rs 150-200 per quintal compared to normal sugar. This would enhance the income of farmers in the region,” said Rana.

Munderwa plant will comprise a sugar factory of 5,000 tonnes of cane crushed per day (TCD) capacity (expandable to 7,500 TCD), 27 megawatt (mw) cogeneration facility and a distillery. The unit was closed down in 1999.

The Pipraich unit would comprise sugar plant of 5,000 TCD capacity (expandable to 7,500 TCD), apart from 27 mw power cogeneration unit and a modern plant of 120 kilolitre per day (KLPD) to produce ethanol directly from sugarcane juice. This unit had been lying closed since 2008.

“Pipraich unit would be the first ethanol plant in North India with the facility to manufacture ethanol directly from sugarcane juice. This fulfills our vision to provide the cane farmers with additional income,” Rana said.