Chief Minister M. Karunanidhi on Saturday launched the Rs.1,125.63-crore programme of modernisation of 12 sugar mills and cogeneration of 183 megawatt (MW) of power.
A sum of Rs. 849.36 crore was sanctioned for the installation of cogeneration power units in 10 cooperative sugar mills and two public sector mills and the remaining Rs.276.27 crore for the modernisation of the mills, Mr. Karunanidhi said, inaugurating the works at various mills simultaneously in Namakkal, Villupuram, Madurai and Thanjavur districts through videoconferencing from the Secretariat here.
Reiterating that the government was committed to the welfare of cane farmers, the Chief Minister said the government sanctioned the payment of Rs. 2,000 per tonne of sugarcane as procurement price this year.
Of the proposed 183 MW, 63 MW was earmarked for the use of the mills and the remaining 120 MW for the State. On completion of the cogeneration component in 18 months, the Tamil Nadu Electricity Board would get power from the mills.
Besides, the programme would benefit nearly 1 lakh cane farmers and provide employment to 1,200 persons.
Deputy Chief Minister M K Stalin, Electricity Minister Arcot N. Veeraswami and Chief Secretary K. S. Sripathi were present in Chennai.
In Mohanur of Namakkal district, Deputy Speaker V. P. Duraisamy and Collector U Sagayam spoke, while in Villupuram, Higher Education Minister K. Ponmudi participated in the function.
Three of the 10 cooperative sugar mills, located in Villupuram district, would have the installed capacity of 48 MW. They would generate revenue to the tune of Rs. 72.80 crore annually through sale of power and within eight to nine years they could recoup the investment, official sources said.
Participating in the videoconference from Thanjavur, Union Minister of State for Finance S.S.Palani Manickam recalled that the Chief Minister declared open Arignar Anna Sugar Mills at Kurunkulam near Thanjavur in 1975 on the occasion of the birth anniversary of former Chief Minister C.N. Annadurai.
M.S.Shanmugham, Thanjavur Collector, said that the mill earned a profit of Rs. 30 crore last year.
Madurai Collector C. Kamaraj, who participated in the videoconference, expressed the hope that the Rs 110.28-crore modernisation package for National Sugar Mill, Alanganallur, would facilitate a turnaround of fortunes for the mill, which had a crushing capacity of 2,500 tonnes of sugarcane a day now. Power generation at the mill, would make its financial position comfortable.