The project, appraised by the Sugar Technology Mission and ICICI Ltd, is being financed by a Sugar Development Fund loan of Rs 16.05 crore, ICICI term loan of Rs 8 crore and promoters' contribution of Rs 2.70 crore.The project cost consists of civil works worth Rs 2.08 crore, pre-operative expenses of Rs 2.65 crore, plant and machinery worth Rs 21.34 crore and a contingency provision of Rs 68 lakh.

The company does not envisage any problem in cane availability for the enhanced capacity. Besides, the management has undertaken extensive cane development programmes with assistance from the Vasantdada Sugar Institute, Pune.

At its board meeting on June 19, the company announced theresults for the year to March 31, 1999. Riga said sales fell to Rs 42.99 crore from Rs 51.60 crore in 1997-98, and net profit was also lower, at Rs 48.54 lakh, against Rs 3.20 crore in the previous year.

During 1998-99, the company produced 2.16 lakh quintals of sugar against 2.06 lakh quintals in 1997-98 but the recovery rate dropped by 0.5 percentage points to 9 per cent. Cane crushed was also lower at 24.02 lakh quintals against 25 lakh quintals in the previous year.

Cane availability and recovery declined because of the heavy floods in north India during the year, which damaged the crop and also lowered the sucrose content of cane.