NEW DELHI, March 10: Indian Potash Ltd (IPL) on Tuesday said it has signed an agreement with the Odisha government for the modernisation and expansion of Badamba Sugar Mill with an estimated investment of Rs 360 crore.
The Memorandum of Understanding (MoU) was signed by IPL managing director P S Gahlaut and state cooperation department commissioner-cum-secretary Rajesh Prabhakar Patil in the presence of Union Cooperation Minister Amit Shah on March 6, the company said in a statement.
As part of the MoU, the Odisha government will provide 112 acres of land on a long-term lease basis to IPL for the establishment of the mill and associated infrastructure.
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Badamba Cooperative Sugar Mill — which has remained shut for more than 15 years — is expected to commence operation within one year and will have a capacity of 3,500 TCD (tonnes cane per day).
It will also consist of a 16 megawatt cogeneration power plant, a 10-tonne-per-day bio-CNG plant, and a state-of-the-art cold storage facility.
The project is expected to directly benefit around 10,000 farmers of the Badamba block of the Cuttack district by reviving sugarcane cultivation in the state, enhancing farmer income and generating employment in the region.
Based on the successful turnaround of three sick sugar mills in Gujarat, IPL, now under the guidance of the Union Cooperation Ministry, took up the project for the revival of Badamba Cooperative Sugar Mill.
It has roped in National Federation of Cooperative Sugar Factories Limited and SBI Capital Markets Limited for a detailed technical and financial feasibility study.
“By restoring this mill, we aim to create sustainable opportunities for farmers, encourage sugarcane cultivation, generate employment, and contribute to the economic development of the region,” Gahlaut added.
IPL is engaged in the import, distribution, and marketing of fertilizers and agri-inputs. Over the years, IPL has also diversified into agro-industrial ventures and currently owns 11 sugar mills spread over Uttar Pradesh, Gujarat and Odisha. (PTI)
