Staff Correspondent

To set up greenfield project in Bihar

First phase will involve an investment of Rs. 530 cr.Eligible for incentive in U.P. for ten yearsTotal sugar production capacity will go up to 46,250 tcd

MUMBAI: Dhampur Sugar Mills, one of the largest sugar producers, is implementing expansion projects costing Rs. 863 crore in two phases. The first phase, already under way, will involve an investment of Rs. 530 crore and will be completed by March 2007 after which the second phase entailing an investment of Rs. 333 crore will be undertaken.

The project cost has gone up to Rs. 530 crore with an additional investment of Rs 95 crores in the first phase. This makes the company eligible for incentive in Uttar Pradesh for ten years instead of five years.

In the first phase, the company is increasing the Dhampur unit capacity to 12,000 tonnes crushed per day (tcd), generating power up to 45 MW from the earlier 20 MW and increasing the distillery capacity to 140 kilolitres a day (klpd) from 100 klpd. The Asmoli unit's capacity will raised to 9,000 tcd (6,000 tcd) and power generation capacity is being raised to 40 MW (12 MW). The Mansurpur unit is being expanded to 7,000 tcd (6,500 tcd) and power generation doubled to 24 MW. The Rajpura unit with a capacity of 7,000 tcd was commissioned in the first phase.

In the second phase, in addition to expanding the existing facilities, the company will set up a greenfield project at Madhuban, Bihar, at a cost of Rs. 185 crore. It will have a sugar plant of 5,000 tcd along with a distillery of 60 klpd and generate 28 MW of power.

The second phase will see the company earn additional revenue from power generation and ethanol. Dhampur Sugar will increase the power-generating capacity by 88 MW. Apart from Madhuban, the capacity of the existing power unit at Dhampur will be doubled to 60 MW with an investment of Rs. 78 crore. A 30 MW power plant will be installed at Rajpura with an investment of Rs. 70 crore.

The company will also install high-pressure efficient boiler and ancillaries at Mansurpur, involving an investment of Rs. 40 crore.

It is investing a like amount in a 100 klpd distillery at Asmoli and Rs. 15 crore in the sugar refinery at Rajpura.

After the completion of the expansion programme, the group's sugar production capacity will be 46,250 tcd against 30,750 tcd now.