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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.