After two years of delay, the EID Parry (India) and the US food major Cargill International?s joint venture sugar refinery at Kakinada in Andhra Pradesh is all set to go on stream soon. The trial production of the mega sugar refinery has already begun and the plant will go on stream in the near future, said official sources.
The sugar refinery, with an installed capacity to produce 1 million tonne of sugar, supposed to go on stream two years ago, had been delayed owing to inordinate time taken in getting the necessary clearances coupled with poor market conditions globally. Set up on the 1:1 equity/debt ratio, the project will be built at an estimated investment of Rs 400 crore, official sources added.
The joint venture sugar refinery, named after Silk Road Sugar Private Limited, is set up at the Kakinada SEZ, was originally structured for export purpose, but set to market in India initially to cash in on the huge demand and supply gap.
“Based on the huge demand and supply gap coupled with an interesting price point, the joint venture will initially sell the refined sugar in the domestic market,” the sources maintained. To start with, the JV will produce anywhere between 500,000 to 600,000 tonne which will be ramped up to the original 1 million tonne in phases, the sources further said. The project will also have a captive power generation of 35 mw.
According to industry sources, India’s total sugar demand is likely to go up to 23.5 million tonne this year as against the estimated output of 16 million tonne for 2009-10 season (October-September). The gap is currently being met though imports.
