PATNA, MAY 4: Rekindling hope in India’s heart of darkness, Coimbatore-based sugar major Rajshree Sugars and Chemicals Ltd has chosen Bihar for its foray into the north to set up two integrated sugar complexes.
The single-window State Investment Promotion Board (SIPB) has already received Detailed Project Reports (DPR) from Rajshree in this regard. The company proposes to set up two integrated sugar complexes by investing a total of Rs 480 crore in two Bihar districts: Rs 242 crore for the East Champaran project and Rs 238 crore for the one in Madhubani.
Early next week, the company will file a DPR for another project in Muzaffarpur district. Apart from the three new mills, Rajshree has also applied for revival of three state-owned mills, now shut, in Madhubani, Darbhanga and Muzaffarpur.
Rajshree’s proposed mills will not only produce sugar but will help tide over part of the power crisis in the state. Each of its two sugar mills will have a minimum crushing capacity of 5,000 TCD (Tonnes Cane/Day) with co-generation units, producing 30 MW of power each. They will also have a distillery to produce ethanol.
“It’s great news for Bihar. On May 2, the SIPB completed the first hearing on the two project reports and forwarded it to different departments for the feedback which has to come in 15 days,” said Cane Development Minister Nitish Mishra.
If the departments do not raise any objections, then the project will be deemed to have been cleared. Rajshree is keen to start the projects at the earliest. On behalf of the company, Dr M Naidu (Advisor, Research and Development) has been camping in the state for the last two months. “We are very happy with the response from the government and more than hopeful about getting the clearance,” he said.
In the DPR, Rajshree has urged the government to acquire and transfer the land within 90 days as it proposes to commence operations from December, 2008. “If there is delay in land acquisition, commissioning of the project will be shifted to the next season, depriving us of the incentives and subsidies... without which the project may not be very attractive,” the proposal underlines.
Mishra is more than hopeful of early clearance. On incentives and subsidies, he even hinted at a future revision to make it more competitive. “We are even thinking on offering more incentives than UP, our nearest rival, to attract more companies,” Mishra told The Indian Express.
He said the proposal to revive 15 state-owned closed sugar mills is also likely to take shape by this month-end. Already, a number of companies have shown interest in acquiring these mills.
Of the 39 Expression of Interest from sugar companies wanting to set up new sugar mills, 13 have taken concrete steps forward. They have filed the Industrial Enterprise Memorandum (IEM) with the Centre’s Industries department. The IEM, in short, means the companies are really serious about projects in the state. Some of the major names who have filed IEMs are Upper Ganges, SKG, Radha Sugar and Rajshree. Dhampur Sugar, SCM and Ugar Sugar are carrying out surveys in the state.
While only nine mills are working, sugar production in the state in 2005-06 has increased by 67 per cent—the highest in the country. Nearest rival UP way behind with 15 per cent while the all-India increase is 45 per cent.
“The sugar crop was very good. In the mills, there’s no dearth of canes for crushing. It’s an indication of the prospects for the industry in the state,” said Mishra.
The single-window State Investment Promotion Board (SIPB) has already received Detailed Project Reports (DPR) from Rajshree in this regard. The company proposes to set up two integrated sugar complexes by investing a total of Rs 480 crore in two Bihar districts: Rs 242 crore for the East Champaran project and Rs 238 crore for the one in Madhubani.
Early next week, the company will file a DPR for another project in Muzaffarpur district. Apart from the three new mills, Rajshree has also applied for revival of three state-owned mills, now shut, in Madhubani, Darbhanga and Muzaffarpur.
Rajshree’s proposed mills will not only produce sugar but will help tide over part of the power crisis in the state. Each of its two sugar mills will have a minimum crushing capacity of 5,000 TCD (Tonnes Cane/Day) with co-generation units, producing 30 MW of power each. They will also have a distillery to produce ethanol.
“It’s great news for Bihar. On May 2, the SIPB completed the first hearing on the two project reports and forwarded it to different departments for the feedback which has to come in 15 days,” said Cane Development Minister Nitish Mishra.
If the departments do not raise any objections, then the project will be deemed to have been cleared. Rajshree is keen to start the projects at the earliest. On behalf of the company, Dr M Naidu (Advisor, Research and Development) has been camping in the state for the last two months. “We are very happy with the response from the government and more than hopeful about getting the clearance,” he said.
In the DPR, Rajshree has urged the government to acquire and transfer the land within 90 days as it proposes to commence operations from December, 2008. “If there is delay in land acquisition, commissioning of the project will be shifted to the next season, depriving us of the incentives and subsidies... without which the project may not be very attractive,” the proposal underlines.
Mishra is more than hopeful of early clearance. On incentives and subsidies, he even hinted at a future revision to make it more competitive. “We are even thinking on offering more incentives than UP, our nearest rival, to attract more companies,” Mishra told The Indian Express.
He said the proposal to revive 15 state-owned closed sugar mills is also likely to take shape by this month-end. Already, a number of companies have shown interest in acquiring these mills.
Of the 39 Expression of Interest from sugar companies wanting to set up new sugar mills, 13 have taken concrete steps forward. They have filed the Industrial Enterprise Memorandum (IEM) with the Centre’s Industries department. The IEM, in short, means the companies are really serious about projects in the state. Some of the major names who have filed IEMs are Upper Ganges, SKG, Radha Sugar and Rajshree. Dhampur Sugar, SCM and Ugar Sugar are carrying out surveys in the state.
While only nine mills are working, sugar production in the state in 2005-06 has increased by 67 per cent—the highest in the country. Nearest rival UP way behind with 15 per cent while the all-India increase is 45 per cent.
“The sugar crop was very good. In the mills, there’s no dearth of canes for crushing. It’s an indication of the prospects for the industry in the state,” said Mishra.
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