M’rashtra to take private help for integrated cane processing

Sanjay Jog
Posted: Monday, May 12, 2008 at 2326 hrs IST
Updated: Monday, May 12, 2008 at 2326 hrs IST

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Mumbai : Even though power-starved Maharashtra’s efforts to encourage bagasse-based co-generation projects is yet to gather momentum, the private sector has evolved a new concept—integrated cane processing project (ICPP)—which envisages simultaneous generation of electricity and ethanol, either from molasses or directly from cane juice. Maharashtra, which faces a daily power shortfall of around 4,000 mw, has the potential of 1,500 mw of bagasse based cogeneration. However, against this potential, at present, around 194 mw of bagasse-based co-generation projects are under operation.

The maiden project is initiated by Sunil HiTech Engineers, a leading company in the field of fabrication and erection of structural, equipment in the engineering industries. The company, in association with strategic investors, would invest Rs 360 crore to develop ICPP at Gangakhed in Parbhani district of Maharashtra. The company has appointed Infrastructure Leasing & Financial Services (IL&FS) as the sole transaction advisor and fund arranger for the project. The foundation stone ceremony is being planned on May 27 and the project is expected to be complete in 18 months.

IL&FS sources told FE that ICPP comprises a sugar manufacturing plant with cane-crushing capacity of 6,000 metric tonnes per day, co-generation plant of 30 mw to be run for 330 days by using surplus bagasse from nearby sugar mills, biomass and agro waste. The co-generation plant will have facilities for burning coal in the event of shortfall of renewable energy fuel. Besides, ICPP will also consist of two ethanol plants with 60 kilo litre per day capacity. Ethanol will be produced either from molassess or from sugarcane juice.

This apart, the project also comprises an industrial water plant. The project is located in the cane surplus Parbhani district where last year the Maharashtra government had to distribute Rs 20.7 crore to farmers for non-crushing of standing sugarcane crop. The total disbursement of compensation in the Aurangabad region stood at Rs 114.33 crore.

Under ICPP, it is possible to recover and use water from cane. The ICCP would have adequate flexibility to tune production according to market dynamics. It is also possible to get more revenue by selling surplus power beyond the crushing season, which is the period of peak demand. A typical sugarcane has 11% sugar, 30% bagasse and water. A conventional mill crushes cane, produces sugar and sells molasses and surplus bagasse and is, therefore, unable to withstand market fluctuations.

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