Comments
NSL Sugars Ltd, part of city-based Nuziveedu Seeds (NSL) group, which is in process of achieving financial closure for expansion plans for its Aland unit (Karnataka), today said it is set to raise Rs 288 crore debt from various banks.
NSL Sugars, which entered into an MoU with the Karnataka government in March last year to revive the ailing Aland Cooperative Sugar Factory at Bhusnur village in Aland taluka on lease, rehabilitate, operate and transfer (LROT) basis, will be investing Rs 96 crore as equity, NSL Chairman and Managing Director Mr M Prabhakar Rao said.
As per the MoU, NSL Sugars has been given the freedom to expand the present crushing capacity of 1,250 tonnes a day to 2,500 tonnes a day.
NSL Sugars has also been asked to set up a 15-MW co-generation power plant and establish 30 kilolitre per day (KLPD) distillery and ethanol unit within five years from the date of signing of the lease agreement. The factory has been leased out to NSL Sugars for 30 years for Rs 75 crore.
“The milestone was achieved when Central Bank of India lead-arranger, syndicated the entire debt component of Rs 288.51 crore. The project is to be financed on a 3:1 debt-equity ratio, and is estimated to cost around Rs 384.68 crore,” Mr Prabhakar Rao told PTI.
The cane crushing capacity will be increased from 1,250 tonnes to 5,000 tonnes, which is ultimately expandable to 7,000 tonnes. The funds will also be used for setting up of a green field co-generation plant of 28 MW and a distillery plant of 60 KLPD capacity, he said.
Besides Central Bank, Canara Bank, State Bank of Patiala, State Bank of Hyderabad, Corporation bank and Indian overseas Bank have also come forward for the debt participation, mr Rao said.
The integrated project comprises of a sugar mill for the manufacture of high quality sugar, thereby making available required biogases for the co-gen power plant and molasses for ethanol plant.
The command area of the proposed sugar mill has excellent irrigation facilities, potential for sustained cane supply to the sugar mill, grains and biomass availability, he said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.