25 Sep 2021  |   06:31am IST

Govt-run Sugar Factory to be modified into profit making ethanol production plant

Govt-run Sugar Factory to be modified into profit making ethanol production plant

Team Herald

PONDA: The only Government run Sanjivani Sugar Factory at Dharbandora that was shut down to stop maintenance expenditure of almost Rs 5 crore, without return is mulled to be turned into a ethanol producing  plant instead.

Administrator Chitamani Perni, said “There is huge demand for ethanol in the country and that’s why he is hoping ethanol plant would be profitable.” 

Pune based Deccan Sugar Technologist Association India (DSTA) has been requested to prepare a Detailed Project Report (DPR) for setting up a new 40,000 liter per day capacity ethanol  producing plant with zero liquid discharge system from sugarcane juice/molasses/grain at Sanjivani Factory. Perni said some existing machinery/ infrastructure at the factory would be useful and has been asked for consideration while preparing DPR.  The Project would be operated on PPP Model, after government approval. 

“Sugar needs lot of process and currently there is no much demand and also rate for sugar at international and domestic market is low.  Government spent lot of money on ethanol import and so ethanol production could be viable and sustainable option for Sanjivani,” said Perni.

He further revealed that Government of India is encouraging ethanol production as 20 per cent ethanol needs to be mix with fuel and currently India produce only 8 per cent and rest 12 per cent is imported. Centre has set target to achieve this 20 per cent by the year 2025. “If we produce ethanol than the petroleum companies in Goa would buy it from Sanjeevani and it would also benefit farmers as they would get payment on 21 days time. The project could be profitable.  We set up a target of producing 40,000 liter per day ethanol,” he said. 

Farmers are capable of supplying 50,000 thousand metric tonne per year. “Additional sugarcane can be procured from our neighbouring State and in case Goan farmer produce one lakh metric tonne then there would be no need to import sugarcane,” he said. 

He said the detail project report would come in six weeks. He hopes to earn a net profit of Rs 5 per one liter of ethanol production. “If there is 40,000 liter production per day then there would be net profit of Rs 2 lakh,” he said. 

The project would be financed through loan and Central government would provide some subsidy scheme for project.


IDhar UDHAR

Idhar Udhar