The sugar industry in Karnataka is in no mood to slow down its capacity addition, despite a shortage of cane for two consecutive years. The crushing capacity is likely to rise 27 per cent in the next one year to touch around 280,000 tonnes crushed per day (TCD).
Already, 17 new mills with an estimated 42,500 TCD are in their various stages of construction in the state. In addition to this, construction of four new mills and expansion of an existing mill have been approved by the state government. These mills, once constructed, will add 17,000 TCD to the installed capacity in the state. This means, 22 new mills will come up in the state with a combined crushing capacity of at least 60,000 TCD during the sugar season 2011-12, according to sugar industry sources.
Last week, the Karnataka government approved four new sugar plants with a combined investment of Rs 571 crore. The new mills are likely to be built over a period of one year. The new proposals are from Chamundeshwari Sugars Ltd for construction of 3,500 TCD sugar plant with 18 Mw cogeneration unit at an investment of Rs 146 crore in Hassan district and Basava Jyothi Sugars Ltd with 2,500 TCD white crystal sugar plant with 14 Mw cogeneration unit and 45 kilo litres per day distillery at an investment of Rs 131 crore in Chikodi taluk of Belgaum district.
Sangamesh Sugars Pvt Ltd plans to set up a 3,500 TCD plant with 12 Mw cogen plant for an investment of Rs 112 crore in Raibag taluk of Belgaum district. Shiva Sagar Sugar and Agro Products Ltd has planned to set up a 2,500 TCD sugar plant with 15 Mw cogeneration unit at an investment of Rs 95 crore in Ramadurg taluk of Belgaum district.
Nirani Sugars Ltd, which presently operates a 10,000 TCD sugar plant with a cogeneration unit of 62 Mw at Mudhol in Bagalkot district, is planning to expand its crushing capacity to 15,000 TCD and enhance power generation to 67 Mw at an investment of Rs 87 crore.
During the ongoing sugar season (October 2009-September 2010), 55 mills crushed cane with a combined capacity of 220,000 TCD and cogeneration capacity of 730 Mw. Sugar production from these mills is likely to touch 2.1 million tonnes in the present season, an increase of 26.4 per cent compared to 1.66 million tonnes produced in the previous season.
According to present indications, the cane availability for the next sugar season starting October 2010 would rise 15 per cent to 23 million tonnes.
