Maharashtra Government Approves By-Product Projects for Sugar Mills Under BOT and BOOT Models
The Maharashtra government has introduced a policy enabling cooperative sugar factories to develop by-product projects with private investors. This initiative allows mills to process sugarcane by-products like bagasse and molasses under BOT and BOOT models, aiming to generate additional income. The policy outlines eligibility criteria, approval processes, and project safeguards, targeting factories facing financial distress. Projects can include biogas plants, ethanol units, and more, with a total agreement period not exceeding 15 years.
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Maharashtra has enacted a policy permitting cooperative sugar factories to establish projects processing sugarcane by-products via private investment under BOT and BOOT models. This initiative targets financially distressed mills, allowing them to utilize by-products for generating income through various ventures, including power plants and biogas units.
The policy, effective from February 26, includes strict eligibility criteria for participation, with projects costing up to Rs 5 crore approved by the sugar commissioner, while larger projects require government approval. Developers will be selected through e-tendering, and a comprehensive project report is mandatory.
The income generated must first address government dues. The policy aims to enhance the financial stability of cooperative sugar mills.
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