Patna, Jan 12 (PTI) Indian Potash Ltd (IPL) will set up a50,000 quintal sugarcane crushing plant following an agreementsigned between the public sector undertaking and the stategovernment.
The company''s Executive Director Sudhir Relan and thePrincipal Secretary (sugarcane) signed an agreement for therevival of the sick sugar mill at Motipur located inMuzaffarpur district.
Under the agreement, IPL has been leased about 266 acresland by the state government for 60 years with a provision ofextension of lease for another 30 years after the formeragreed to pay a bid amount of Rs 56.20 crores against thefloor price of Rs 56.16 crores.
Besides the sugar mill, the company will also set adistillery and a 15-MW captive power plant on the 266 acresland, Relan said.
The IPL official said that the Motipur sugar mill willbe set up at an estimated cost of Rs 350 crores and turnoperational in 18 months, besides generating about 450 jobs.
The PSU will also run a dairy farm and sell milk andother products in the local market.
"We may consider bidding for more sick sugar units inBihar in future, as there were nine more state-owned sicksugar mills in Bihar to be put for auction under the revivalplan," Relan said.
Sugarcane Minister Awdesh Singh Kushwaha said that theprocess for revival of remaining sick sugar mills willcommence soon.