Dhampur Sugar plans new facility in Bihar

THERE is sudden sweetness in Laluland . Dhampur Sugar is planning to set up a sugar factory at Madhepura, Lalu Prasad Yadav's stamping ground. This will be the first large modern mill in the area and a greenfield investment by the company. Sugar companies are rushing to Bihar to take advantage of a new subsidy policy that shells out heavy sops to anyone investing upwards of Rs 250 crore.

Dhampur expects to take board approval for the project six weeks from now. "We have identified land in Madhepura and a detailed survey is now on by our team to gauge its suitability," said a top company official. The factory is likely to go on stream by October '07.

As the quantity and quality of cane available locally is not certain, the company does not have firm plans about mill size. However, it is expected to be around 4,000 tcd. With the arrival of a large mill, local farmers can be expected to get a better price for their cane.

Other companies that have recently identified land in Bihar include Vishnu Sugar mills (Gopalganj), SB Overseas (Nalanda ), India Glycols (Saran), Khaitan India (Nadia), and Dhauladhar Industries (West Champaran).

At present, Madhepura is better known for its cluster of gur factories, which are usually tiny or small scale units. Sugarcane is popular among farmers because it can grow in both waterlogged as well as dry areas . There are nearly 80 big and small gur manufacturing units operating in Madhepura district scattered in the radius of 25 km. The total investment in these units is around Rs 350 lakh, with an annual turnover of Rs 10 crore.