The Rs 800 crore project along with the capacity of crushing 10,000 ton of cane per day, would also include an ethanol manufacturing unit with a daily capacity of 240 kilolitres and a 50MW power plant.
The project would require 180 acres and 102 acres had already been acquired.
"We are keeping space for expanding the ethanol manufacturing capacity to 700-1000 kilolitres a day, if the state government allows the production of ethanol directly from the cane," said Pawan Kumar Ruia, chairman of the Ruia Group on the sidelines of a clourful foundation stone laying ceremony of the plant which was graced by several central government dignitaries and four elephants belonging to a local politician.
Out of Rs 800 crore project cost, Rs 120 crore would come from the sugar development fund (SDF), Rs 130 crore would be promoters' contribution and the remaining Rs 550 crore would be raised through bank loans.
This is the second sugar mill of the group after Kamlampur Sugar and Industries Ltd at Uttar Pradesh, which has a daily capacity of crushing 4000 ton of canes.
The chairman added that the company was keen to set up sugar mills in other parts of the country as well.
Later, Ruia said that the group company Falcon Tyres Ltd was planning to set up a factory as a greenfield project near Mysore.
"We have already identified land for the plant," Ruia said.
The estimated cost for the Falcon project was around Rs 500 crore and the capacity of the plant would be in the region of 150 ton a day.
"The plant would be near Mysore and the total cost of the project is likely to be in the region of Rs 500 crore," he added.
