Dhampur Sugar Mills Limited to expand distillery capacity at Asmoli unit to 250,000 LPD

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Source : Business Standard | 23 Dec, 2020 | 05:52 PM

The Board of Directors of Dhampur Sugar Mills Limited in its meeting held today i.e., 23rd December 2020, through Video/Audio Conference means has considered and approved the expansion of distillery capacity by 100,000 LPD at Asmoli unit of the Company from 150,000 LPD to 250,000 LPD. With the proposed expansion, the total capacity of the Company will stand augmented from 400,000 LPD to 500,000 LPD.

The implementation of the expansion of distillery plant from 150,000 LPD to 250,000 LPD is expected to be completed within Ten (10) months, from the date of ordering of the main plant and equipment. Thus, the commercial production is targeted to commence in the Distillery with expanded capacity from 1st November 2021.

The investment required for the capacity expansion is Rs 130 crore, of which Rs 32.50 crore will funded via internal accruals and the remaining Rs 97.50 crore will be funded via bank loans. The proposed capacity enhancement shall be eligible for 50% interest subvention from Government of India under their scheme for boosting ethanol production in the country, the company added.

With a view to augment ethanol production, Government of India has fixed better prices of ethanol produced from C & B heavy molasses, syrup and cane juice. Producing ethanol from B-heavy molasses /syrup/ cane juice, not only assures higher price of ethanol but also reduces sugar inventory through sugar sacrificed in B heavy/syrup/cane juice.

“The company is capable of producing required feedstock’s like molasses (B heavy and C heavy) / syrup /cane juice for production of ethanol with expanded capacity, Dhampur Sugar Mills said in a statement while offering rationale for the capacity expansion.

Dhampur Sugar Mills is engaged mainly in the manufacturing and selling of sugar, chemicals, ethanol and co-generation and sale of power.

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