After announcing the modernisation and starting co-generation from Baazpur and Kitcha sugar mills, the Uttarakhand government is now planning to modernise Nadehi cooperative sugar mill in Udhamsingh Nagar district.
This was announced by chief minister Vijay Bahuguna at a function at Jaspur yesterday. Bahuguna said the government would provide all possible help for the expansion and modernisation of Nadehi sugar mill which has the crushing capacity of 2000 tons per day.
The government had been making all out efforts to start co-generation from its Baazpur co-operative sugar mill during the past few months to generate necessary funds for the purpose. The state cabinet early this year had put its seal of approval on a co-generation and modernisation proposal of Baazpur sugar mill with an investment of Rs 74 crore. In the second phase, the government would modernise Kitcha sugar mill by setting up a similar co-generation project.
Under the scheme, the Baazpur sugar mill would produce 12 Mw of power by enhancing its boiler capacity. The power would be sold to the Uttarakhand Power Corporation Limited (UPCL), the sole power distributor in the state.
For generating funds to the tune of Rs 74 crore for co-generation, the sugar mill applied loan from the National Cooperative Development Corporation (NCDC). The 50 per cent of the loan was to be taken from the NCDC and rest from Sugar Development Fund (SDF).
"The NCDC has refused to give loan for the purpose of co-generation. We have no option but to approach our own government again for these funds," said a top government official.
Through this co-generation process, the Baazpur sugar mill was expected to earn revenue of Rs 7-8 crore every year.
However, the cabinet had not given its sanction to Kitcha sugar mill for co-generation due to some land problem. The co-generation and modernisation projects of Kitcha and Nadehi sugar mills will be taken up in the second phase.
For the past several years, the sugarcane department had been trying to revive its co-generation project for Kitcha and Baazpur sugar mills on PPP mode.
Since PPP projects are facing criticism in the state from a section of politicians, the government had chosen to start modernisation and co-generation process for the financial revival of these sugar mills by deciding to take loan from various market agencies.
