What could be seen as a revival of the sugar industry in Bihar, HPCL Bio Fuels Ltd will start producing sugar and ethanol from the coming sugar season starting October.

HPCL Bio Fuels Ltd is wholly owned subsidiary of the Government owned oil-marketing company Hindustan Petroleum Corporation Ltd (HPCL). It has been given two sugar plants on lease. One of the plants is in village Sugauli in East Champaran, while the other is in Lauriya village in west Champaran.

The company has invested over Rs 600 crore to revive both the plants, which were closed down in 1996.

Mr Sushil Kumar Modi, deputy Chief Minister of Bihar, told Business Line , “The company has completed testing and trials. Now it is in a position to go for commercial production.”

With this, the State would see the implementation of more and more investment proposals including first foreign direct investment, added Mr Modi.

Despite repeated attempts, company officials could not be contacted. However, its Web site says that the crushing capacity for both plants together would be 3,500 tonnes a day. It will convert half of the juices into sugar while remaining into ethanol.

Mr Modi also said that the State is getting ready to receive the first foreign direct investment. Top officials of Molson Coors Cobra Ltd visited Patna last week.

Molson Coors Cobra Ltd is joint venture between the US-based Molson Coors and Indian born Lord Karan Billimoria's UK-based company Cobra Beer.

Molson Coors Cobra Ltd makes beers such as Cobra Premium, King Cobra Superior and Iceberg 9000.

The company has plans to invest $35 million to augment capacity of Bihta plant, near Patna. It plans to increase the capacity from 1,75,000 hecta liters (I hecta liters =100 liters) to 5 laks hecta liters with two years. The State Government is expected to earn Rs 50 crore from this plant alone every year, said Mr Modi.

> Shishir.s@thehindu.co.in

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