Hyderabad, Oct 26: Bharat Sugar Mills Limited (BSML), a 100 per cent subsidiary of GMR Industries Limited, implementing the Rs 263 crore new sugar complex at Hubli in Karnataka, will be merged with its parent company before March 31 next year.
Talking to Media, Company Managing Director K Narayana Rao said the BSML was implementing the project with an initial crushing capacity of 3,500 TCD expandable to 5,000 TCD. The sugar complex has an in-built 24 MW co-generation plant and 45,000 litre capacity distillery to manufacture rectified spirit Ethanol and ENA was expected to commissioned in November 2007.
The project, whose financed closure has been achieved, was being financed by way of term loans of Rs 175 crore and Rs 88 crore from internal accruals. ''There is a proposal to merge BSML with GMR Industries in the current fiscal'', he said.
It has also completed the expansion schemes of its sugar factory in Andhra Pradesh and has increased the crushing capacity from 3,125 TCD to 5,000 TCD at an investment of Rs 40 crore, which will be commissioned soon.
The company funded the expansion with term loans from banks to the tune of Rs 21.38 crore, Rs 13.88 crore soft loan from Government of India, Sugar Development Fund and the balance Rs 4.74 crore from internal accruals.