The Hindu Business Line : Dwarikesh Sugar to set up greenfield project in UP

Dwarikesh Sugar Industries Ltd (DSIL) has informed the Bombay Stock Exchange & National Stock Exchange about the setting up of its new greenfield project at `Dwarikesh Dham' in Bareilly, Uttar Pradesh that will be operational by the sugar season 2007-08.

The plant will have a cane crushing capacity of 7,500 tonnes crushing per day (TCD) and a co-generation capacity of 36 MW. The company performed a Bhumi Pujan today.

Higher capacity

Mr G.R. Morarka, Chairman and Managing Director, DSIL, said "Our third plant will enhance our capacity to 21,500 TCD, 86 MW power and 30,000 litres per day of distillery. This expansion will take us into a higher league.

"We stand by our long-term strategy to capitalise on the uptrend in sugar prices and enhance capacities to drive growth."

With the commencement of the greenfield project, the company's capacity will move up to 21,500 TCD from 14,000 TCD. The total expenditure incurred for the greenfield project is Rs 200 crore.

Co-generation

The company has started work on its expansion of power cogeneration capacity in its new plant at Dwarikesh Puram from the existing 9 MW to 33 MW.

This will take total power generation capacity of company to 86 MW of which 30 MW will be for captive consumption and 56 MW will be sold to the State grid. The cost of this expansion is Rs 95 crore.

Total capital expenditure will be funded through a mix of internal accruals, FCCB and balance by a debt from banks. The order for major plants and equipments are already placed. Company has already signed PPA for its proposed power with UPPCL.