Power generation in sugar mills MoUs to be signed with nine companies
Chitleen K Sethi
Tribune News Service

Chandigarh, January 3
The Punjab government will collaborate with nine private companies for co-generation of power from government sugar mills in the state.

Gurgaon-based A2Z Infrastructure Limited will take over the sugar mills at Nakodar, Fazilka and Morinda. The Nakodar sugar mill with a crushing capacity 1,250 tonnes of sugarcane, had registered Rs 31 crore loss till March last year, while the one at Fazilka 1,250 tonne capacity was losing Rs 45 crore. Morinda sugar mill with 2,500 tonne capacity registered Rs 40 crore loss.

The company will invest Rs 80 crore each in the mills at Nakodar and Morinda where it intends to generate 20 MW of power each and another Rs 100 crore in Morinda where it expects to produce 25 MW of power. In three cases the company will operate the mills for 15 years.

New Delhi-based Saraya Industries Limited will take over the mills at Nawanshahr, Batala, Ajnala and Gurdaspur. The Nawashahr mill is losing Rs 10 crore and has 2,500 tonne crushing capacity. With the same capacity the Ajnala mill had registered a loss of over Rs 70 crore. The company will invest Rs 70 crore each in these intending to generate 12 MW of power each while increasing capacity to 3,000 tonnes of both mills.

The mills at Gurdaspur had registered losses beyond Rs 30 crore each and the company will invest Rs 135 crore to run these to produce 12 MW of power each.

Mohali-based Spare Industrial Devisors Limited will run the Bhogpur sugar mill for 19 years. The company will invest Rs 185 crore in the mill recording loss of over Rs 20 crore. The capacity of the mill is a little over 1,000 tonnes, but the company intends to increase it to over 5,500 tonne will produce 18 MW of power.

The Budewal sugar mill which registered a profit of over Rs 2 crore would be handed over to Purab Infrastructure Limited, an Amritsar-based company for 15 years. The company will invest Rs 80 crore and intends to generate 20 MW.

State Cooperation Minister Capt Kanwaljit Singh said the MoU with these companies would be signed on January 12. “These nine out of the 15 sugar mills in the state will be functional soon,” he said.