Tuesday, October 10, 2006

Sugar is Bihar’s first taste of success as state looks at money, energy

PATNA, OCTOBER 9: As the Nitish Kumar government goes all out to woo the Tatas and Mahindras to try and build the state’s economy, it is the sugar industry which is rekindling hope in Bihar.
So far, the State Investment Promotion Board (SIPB), the single window clearance, has approved proposals for 15 new sugar complexes from leading players, promising investment of Rs 3,771 crore in the state’s sugar sector.
Of the 15 proposals, nine have already been cleared by the state cabinet which is also likely to clear the remaining six.
Other than sugar, these complexes will also produce electricity for the power-starved state. Once up and running, 332 MW is expected to be generated from the co-generation units. The distilleries will also produce 1,070 kilo litres of ethanol per day to meet future energy requirements.
In a state where no private player invested in the last two decades, the sugar industry’s revival is being considered a major achievement. Those whose proposals have been cleared by the government include Rajshree Sugar, Dhampur and India Glycols.
Coimbatore based-Rajshree Sugar and Chemicals Ltd has major plans. It has decided to set up three new greenfield sugar complexes — in Madhubani, East Champaran and Muzaffarpur — by investing Rs 723 crore. The land acquisition drive has already begun.
With private players making a beeline, existing sugar mills in the state have announced expansion plans to stay afloat. The Harinagar Sugar mill, the largest among the existing ones, plans to increase capacity from 8,000 TCD (tonnes of cane per day) to 10,000 TCD by investing Rs 39.95 crore. Similar plans have been drawn by others like Riga and Swadeshi sugar mills.
“Our incentive package has worked. More sugar companies will be knocking on Bihar’s door. In the eastern region, Bihar’s soil is most apt for sugarcane farming and it offers great potential for the industry,” Chief Minister Nitish Kumar told The Indian Express.
Kumar is confident that in the next three years, these sugar mills will start production and revolutionise the state’s rural economy. “Imagine what kind of thrust the rural economy will get once 15 new sugar mills start production,” he said, adding this will also impact other sectors. Tractors will be needed to carry sugar canes and a Mahindras tractor factory will be viable, he said.
G C Goel, Secretary, Bihar Sugar Mills Association, said: “We had given up hope. One by one, sugar mills were closing in Bihar. Suddenly, the atmosphere has changed. In 2006-07, the state’s sugar production is set to touch a record 5.5 lakh metric tonnes.”

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