The Hindu Business Line : Upper Ganges to expand capacity at Rs 260 crore

Upper Ganges is planning a rights issue too. It hopes to raise Rs 70 crore but it would be used for the long-term working capital needs. A formal application to the SEBI would be made within the next few weeks.

Kolkata , Feb. 20

UPPER Ganges Sugar & Industries Ltd, a K.K. Birla Group company, has worked out a Rs 260-crore worth of investment for capacity expansion and diversification into co-generation power units and distillery.

Addressing a press conference, Mr C.S. Nopany, Director, Upper Ganges, said the whole group was in the process of expanding the capacity to 45,250 tonnes crushed per day (tcd) from the present level of 39,250 tcd.

He said, a 24-MW co-generation unit is being installed at the Seohar plant of Upper Ganges, which is located in Uttar Pradesh, at a cost of Rs 100 crore. The plant would be ready by the end of 2006. The distillery's capacity is also being increased to 100 kilolitres per day at a cost of Rs 36 crore.

Apart from the Uttar Pradesh plant, the company has two more units in Bihar. The first one is called Bharat Sugar Mills and it is located at Sidhwalia. Capacity of this unit would be expanded from 2,500 tcd to 5,000 tcd.

A co-generation power facility of 18 MW would be installed too. The unit would be consuming 5 MW and the rest would be supplied to the State grid. Total cost of the project is Rs 125 crore.

The second Bihar unit earlier belonged to New India Sugar Mills Ltd (another K.K. Birla sugar venture). Finances of this mill have been demerged for the earlier company has added to the Upper Ganges. High courts have approved the amalgamation scheme.

Half of the funds for the expansion-cum-diversification project of Upper Ganges would be raised as debt. Another 25 per cent would come from the Sugar Development Fund at a 4 per cent interest rate. The rest would be from internal accruals.

"We have not yet finalised the pricing or the ratio of the rights issue. It would be done soon. We are hoping to complete the total exercise by the end of the June," said Mr Nopany.

Upper Ganges is also contemplating a greenfield integrated sugar complex in Uttar Pradesh. The capacity of the unit would be around 5,000 tcd and it would have a co-generation power plant and a refinery.

Oudh Sugar has undertaken a capital expenditure programme worth Rs 90 crore for increasing its capacity to 10,000 tcd from 7,500 tonnes crushed per day. The distillery capacity is being increased to 125 kilolitres per day from 65 kilo litres per day.

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