AMR Agro to take sugar unit on lease in K'taka

Hyderabad-based AMR Agro Farms is taking a sugar unit on lease for 30 years from Shri Sangam Co-operative Sugar Factory (SSCSF) in Belgaum  district of Karnataka on build, own, operate and  transfer (BOOT) basis.

The unit has been leased out as a part of  the Karnataka government's decision to privatise sick units under BOOT basis. SSCSF is situated in a sugar growing belt, and has over 26,000 share holders of  sugarcane growers spread over 30 villages.

AMR Agro will pay yearly lease rentals and will invest Rs 200  crore, chief executive officer Vijay Shiraguppi said in a press release today.

AMR Ago is planning build a 5,000 tcd (tonne cane crushed per day) sugar unit with 30 to 32 Mw co-generation of power and 60-80 kilo litres per day ethanol plant in the next two years, Shiraguppi added.

The AMR Group is promoted by first generation entrepreneur A Mahesh Reddy, and has diversified interests in mining, construction, irrigation contracts and real estate.