Team Herald
PANJIM: The State Cabinet on Thursday accorded its approval to appoint Pune based Deccan Sugar Technologist Association (DSTA) as a consultant to prepare Detailed Project Report (DPR) for installation of 40 KLPD ethanol production distillery unit at Sanjivani Sugar Factory. After being shut for the three seasons, State mulling to yield profit from the loss-making unit into profit.
Chief Minister Dr Pramod Sawant said that government is looking to set up ethanol production unit to restart the factory operation. “The option of making sugar is also there but more focus is on ethanol. Finally, what is important is that we take the sugarcane from farmers and run the factory,” he said.
Sawant said that DPR will be forwarded to the Central government for necessary financial assistance. “Centre has agreed to sanction upto Rs 56 crore to State at a low rate of interest. Once DPR is prepared, we will be in position to know how much amount to borrow,” he explained.
The project is set to be operated on public private partnership (PPP) model after government approval.
The factory is shut since 2019. Last year, the factory was handed over to the Agriculture department to make it operational.
Administrator Chitamani Perni had last week, addressed media and informed that the Government of India is encouraging ethanol production as 20 per cent ethanol needs to be mix with fuel and currently India produce only 8 per cent and rest 12 per cent is imported. Centre has set target to achieve this 20 per cent by the year 2025.