Sugar firm Balrampur Chini Mills on Saturday said that its board has approved a high investment of ₹ 425 crore for a 320 kiloliters per day (KLPD) new distillery plant, which is expected to start by December 2022.
In a board meeting held on Saturday, a revised capital (capital expenditure) of ₹ 425 crore was approved for the 320 KLPD distillery plant.
Balrampur Chini said that on November 4, 2020, the board had approved investment of said 320 crore for the new plant.
“The 105 crore increase in capital is mainly due to 20-KLPD of extra-neutral alcohol (ENA), high storage capacity for raw materials and finished goods, sharp increase in steel prices and changes in designs, more.” Tools for bringing efficiency and adopting automation, ”it added.
The company said that it has planned to borrow ₹ 220 crore from banks as part of a plan to provide financial assistance to increase ethanol capacity announced by the central government.
The remaining amount will be funded through the internal fund.
It added that the company has already received in-principle approval from the Food and Public Distribution Department of the Government of India, which, it said, confirms the eligibility for interest subsidy on a loan of 220 crore.
In addition, Balrampur Chini said that the new plant, which is expected to be operational by December 2022, will operate on sugarcane juice during the season and sugarcane juice during the off season.
The plant is expected to generate annual revenue of approximately ₹ 650 crore and has a cash payback period of less than four years.
The company stated that higher investment would lead to higher efficiency, better recovery of ethanol from juice, which would add to the bottom line (profit) and better payback than previously envisaged.
It is needless to mention that the plant will be a complete zero liquid discharge plant (ZLD), equipped with incendiary boilers and turbines for electric cogeneration, it added.
Balrampur Chini is one of the largest integrated sugar companies in India. It has 10 sugar factories in Uttar Pradesh, with an average sugarcane crushing capacity of 76,500 tonnes per day, distillery and cogeneration capacity of 360 KLPD and 163.2 MW (MW).
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