For the third company - Govind Sugar Mills Ltd - the group is currently chalking out a plan for increasing its crushing capacity, which is now 7,500 tonnes crushed per day to 10,000 tonnes crushed per day. A 30MW power plant is also being considered.

"We are finalising the details of the expansion programme of Govind Sugar and it would be ready shortly," Mr Patodia told Business Line.

Agreements ready

In Upper Ganges Sugar Ltd two power plants are being set up. While the first one is at Seohara (UP), the second is at Bharat Sugar Mill (Bihar). The Seohara unit with a capacity of 24 MW is the biggest plant. Cost of setting it up is Rs 98 crore and it would be commissioned in April 2007. The unit would be generating 1.47 lakh CER every year.

A power purchase agreement has already been signed between Upper Ganges Sugar Ltd and UP Electricity Board. During the sugar season the plant would be selling 12 MW to the grid and 20 MW in the off-season.

The Bihar power plant's capacity would be 15 MW. Its cost is Rs 60 crore and it would generate 70,000 CERs per annum. During season, the unit would sell 9 MW and 13 MW in the off-season.

Similarly, in Oudh Sugar two units have been planned, one at Narkadiaganj in Bihar and at Hargoan in UP. While the first unit would have a capacity of 5 MW, capacity of the second one would be 9 MW.

The cost of setting up these units is Rs 15 crore and Rs 30 crore, respectively, and the unit would be generating CERs of 18,000 and 35,000 per annum. The Hargoan unit is yet to be certified for carbon credit because it is using a 45-kg presser broiler. "To be eligible for CER, the size of the pressure boiler should be more than 45 kg. We have approached the Government for considering this unit as it is a marginal case," he said.

Taken from Business Line