New Delhi, March 10 Indian Potash Ltd (IPL) announced on Tuesday that it has signed an agreement with the Odisha government for the modernization and expansion of the Badamba Sugar Mill, with an estimated investment of ₹360 crore.
The Memorandum of Understanding (MoU) was signed by IPL managing director P S Gahlaut and state cooperation department commissioner-cum-secretary Rajesh Prabhakar Patil in the presence of Union Cooperation Minister Amit Shah on March 6, the company said in a statement.
As part of the MoU, the Odisha government will provide 112 acres of land to IPL on a long-term lease for the establishment of the mill and associated infrastructure.
The Badamba Cooperative Sugar Mill, which has been closed for more than 15 years, is expected to commence operations within one year and will have a capacity of 3,500 TCD (tonnes of cane per day).
It will also include a 16-megawatt cogeneration power plant, a 10-tonne-per-day bio-CNG plant, and a state-of-the-art cold storage facility.
The project is expected to directly benefit around 10,000 farmers in the Badamba block of the Cuttack district by reviving sugarcane cultivation in the state, increasing farmer income, and generating employment in the region.
Based on the successful revival of three sick sugar mills in Gujarat, IPL, now under the guidance of the Union Cooperation Ministry, has taken up the project for the revival of the Badamba Cooperative Sugar Mill.
It has partnered with National Federation of Cooperative Sugar Factories Limited and SBI Capital Markets Limited for a detailed technical and financial feasibility study.
"By restoring this mill, we aim to create sustainable opportunities for farmers, encourage sugarcane cultivation, generate employment, and contribute to the economic development of the region," Gahlaut added.
IPL is involved in the import, distribution, and marketing of fertilizers and agricultural inputs. Over the years, IPL has also diversified into agro-industrial ventures and currently owns 11 sugar mills spread across Uttar Pradesh, Gujarat, and Odisha.