Companies

NSL Sugars gets Orissa nod for sugar refinery

| Updated on: Apr 13, 2011

NSL Sugars, an arm of Nuziveedu Seeds group, has received the go-ahead from the Orissa Government to set up a sugar refinery in that State.

The company is in the process of acquiring land for the Rs 800-crore project.

“We will soon begin the project and it will be commissioned by the end of 2012,” Mr K.V. Hari, Joint Managing Director of NSL Sugars, told Business Line .

Debt-equity ratio

NSL Sugars would fund the project in a debt-equity ratio of 3:1. It would have an initial capacity of 2,000 tonnes a day (tpd).

“We will import raw sugar to refine it. Most of the produce is meant for exports. If there is an opportunity locally, we will look at it depending on the demand,” he said.

Financial closure

Meanwhile, the company achieved financial closure for the expansion plan of its Aland (Karnataka) plant. Central Bank of India-led lenders has agreed to meet the debt requirement of Rs 288 crore.

The Rs 385-crore expansion project was being taken up with a debt-equity ratio of 3:1. The other banks taking part in the debt were State Bank of Hyderabad and Corporation Bank.

Capacity

After the expansion, the capacity of Aland plant would go up to 5,000 tonnes crushed a day (TCD) from the present 1,250 TCD. It would also have a co-generation plant of 28 MW and distillery plant of 60 kilo litres a day (KLPD).

In all, NSL Sugars has a capacity of 11,500 TCD. It registered a turnover of Rs 450 crore in 2010-11.

Published on April 13, 2011

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