Go-ahead for three sugar mills in MP

The decks have been cleared for three new sugar mills in Madhya Pradesh. Of those two have acquired private land while the other is going through the procudures.

"The combined investment of these companies may reach Rs 400 crore," said Pravesh Sharma, principal secretary, department of agriculture.

The companies -- Sai Kripa Sugar Mills Pvt Ltd and Dollex Industries -- have proposed plants in Narsinnghpur and Jhabua districts respectively.

Sai Kripa will set up its unit in Khamghat with a capacity of 2,500 tonnes per day (TPD), which can be expanded to 3,500 TDP. This apart, the unit will produce 175,000 litres per day of ethanol. The investment will be Rs 150 crore.

Dollex will set up one unit in Tendukheda in Narsinghpur and the other in Petlavad of Jhabua district with an investment of Rs 105 crore in each unit. Both the units will manufacture sugar, ethanol and bio-fertiliser.

Despite a surplus production of sugarcane (250,000 tonnes of additional sugarcane this year), the state government is expecting profitable viability for these new units.

"These firms will not only produce sugar but will also produce by-products. Moreover, we are coming up with a new sugarcane policy to protect the interest of the farmers as well as millers," Sharma said.

The Delhi based company Sai Kripa will complete the project next year. The project will also co-generate power of 8 MW in the complex. It will be the first ethanol-producing unit in Madhya Pradesh. Ethanol is mixed with diesel and petrol.

Earlier in May while speaking to Business Standard, a top official of the company had told BS that the company would generate approximately 600 direct jobs and 3000-4000 indirect jobs. At present Madhya Pradesh has 11 sugar mills with, Sugar production, although has not been awarded seasonal industry status, crushing of sugarcane normally lasts till April end each year.