The Hindu Business Line : Balrampur Chini promoters seek loan from sugar fund

THE promoters of Balrampur Chini Mills Ltd, the Saraogis, are seeking a Rs 14.31-crore loan from the Sugar Development Fund to meet their commitments for the co-generation power plant at Balrampur in Uttar Pradesh.

According to the notice issued to shareholders for the company's 29th annual general meeting, Mr S. K. Agarwala, Secretary, said the application for the term loan had already been sent to the Union Ministry of Consumer Affairs and Public Distribution.

The promoters have also sought the permission of shareholders to mortgage certain properties for the term loan.

Sugar major Balrampur Chini Mills has two bagasse-based co-generation power plants. While the first one is located at Balrampur, the other one is at Haidergarh, also in Uttar Pradesh, where the company has recently built an integrated sugar complex.

The total power generating capacity of Balrampur Chini Mills is 39.8 MW, of which 20.25 MW is at Haidergarh. During 2003-04, the power division of the company registered an income of Rs 47.37 crore against Rs 0.72 crore the previous financial year.

"These power plants play a dual role. While it meets the power requirements of the plants, it also helps the company in saving funds from power purchases. Moreover, the power plants are also addressing the parameters of the Kyoto Protocol," company sources said.

During 2003-04, Balrampur Chini Mills registered a gross turnover of Rs 853.84 crore against Rs 667.58 crore the previous year. The net profit jumped to Rs 65.34 crore from Rs 34.06 crore.