Patna, February 23 The Bihar government signed a memorandum of understanding (MoU) with the National Federation of Cooperative Sugar Factories Ltd. on Monday to revive two closed sugar mills in the state, a minister said.
The MoU was signed at a function held at the Deep Narayan Singh Regional Institute of Cooperative Management, Patna.
Under the agreement, NFCSF will prepare a detailed project and feasibility report, in addition to providing consultancy services for setting up the sugar mills.
The two units are located in Sakri in the Madhubani district and Raiyam in Darbhanga.
Both mills have been closed since 1997. The Raiyam unit was established in 1914, and Sakri in 1933.
Speaking to reporters here, Bihar Cooperative Minister Pramod Kumar, who presided over the programme, said, "Two cooperative sugar mills are being re-established at Sakri and Raiyam. A cooperative society of sugarcane-producing farmers will be formed for the mill area through which cultivators will have access to a stable local market."
He claimed that this would ensure sugarcane producers receive a fair price for their produce.
"New employment opportunities will be created in rural areas, and there will be fresh capital inflow into the local economy," the minister added.
According to a statement issued by the government, the step aims to revive closed sugar mills as part of the Bihar government's second resolve, "Samriddh Udyog-Sashakt Bihar" (Prosperous Industry-Empowered Bihar), under the Saat Nischay-3 programme.
Sugarcane complexes are also proposed at Sakri and Raiyam, which will carry out sugar production as well as power generation, ethanol and compressed biogas (CBG) production, it added.