The long-shut Badamba Cooperative Sugar Mill in Odisha is set to be revived after more than 15 years, offering fresh hope to thousands of farmers in the region. Indian Potash Limited (IPL) has signed a Memorandum of Understanding (MoU) with the Government of Odisha to modernise and expand the mill with an estimated investment of ₹360 crore.
The MoU was signed on March 6, 2026, by Dr. P. S. Gahlaut, Managing Director of Indian Potash Limited, and Rajesh Prabhakar Patil, Commissioner-cum-Secretary of the Department of Cooperation, Government of Odisha. The signing ceremony was held in the presence of Union Home and Cooperation Minister Amit Shah, whose push to strengthen the cooperative sector has encouraged institutions like IPL to revive sick sugar mills across the country.
The event was also attended by Union Education Minister Dharmendra Pradhan, Odisha Deputy Chief Minister Pravati Parida, Deputy Chief Minister Kanak Vardhan Singh Deo, and Bhubaneswar MP Aparajita Sarangi.
Modern Facilities Planned
According to the agreement, the revived mill is expected to begin operations within one year and will have a crushing capacity of 3,500 tonnes of cane per day (TCD). The project will also include:
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a 16 MW co-generation power plant,
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a 10-tonne-per-day Bio-CNG plant, and
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a modern cold storage facility.
Benefits for Farmers
The project is expected to directly benefit around 10,000 farmers in the Badamba block of Cuttack district by encouraging sugarcane cultivation in the region. It is also likely to increase farmers’ income while creating new employment opportunities.
The Government of Odisha will provide 112 acres of land to IPL on a long-term lease for setting up the sugar mill and related infrastructure.
Revival Plan Based on Earlier Success
IPL decided to take up the project following the successful revival of three sick sugar mills in Gujarat. For the Badamba project, the company has partnered with the National Federation of Cooperative Sugar Factories Limited and SBI Capital Markets Limited to conduct a detailed technical and financial feasibility study.
Boost to Rural Economy
The revival of the mill is expected to boost the local economy by promoting sugarcane cultivation, which is increasingly seen as an energy crop due to its potential in producing ethanol, power, and bio-fuels. The project is likely to generate jobs and encourage farmers to return to sugarcane farming.
Company’s Commitment
Speaking on the development, Dr. P. S. Gahlaut, Managing Director of Indian Potash Limited, said the revival reflects the company’s commitment to supporting farmers and strengthening agricultural value chains.
He added that reopening the mill would create sustainable opportunities for farmers, encourage sugarcane cultivation, generate employment, and contribute to the economic growth of the region.
The reopening of the Badamba Cooperative Sugar Mill is expected to fulfil the long-standing demand of local farmers and residents. Once operational, it will help revive sugarcane cultivation in the area, strengthen rural livelihoods, and give new momentum to the cooperative movement in Odisha.
