The co-operative sugar mills of the state would soon be made self-reliant as far as power generation is concerned. Punjab Sugarfed recently signed an MoU with private companies for setting up co-generation sugar plants and their upgradation on build operate and transfer (BOT) basis. Today, Co-operative minister Capt Kanwaljit Singh laid the foundation stone for setting one such power plant at the Budhewal co-operative sugar mill here.

While laying the foundation stone for the power plant which will generate 20 megawatt (MW) of electricity, the Co-operative minister said the state government had chalked out a special plan to revive the nine co-operative sugar mills in the state. Under the plan, power generation plants would also be set up at the mills. He said that Rs 800 crore would be spent on setting up power generation plants and each plant will generate electricity between 20 MW and 25 MW. In total, all these plants will generate over 150 MW of electricity.

Capt Kanwaljit Singh said that Punjab Sugarfed had recently signed an MoU on behalf of these nine co- operative sugar mills and private parties. The MoU was signed at Chandigarh on January 12. Besides Budhewal, the other sugar mills include of Ajnala, Batala, Bhogpur, Fazilka, Gurdaspur, Morinda, Nakodar and Nawanshahar. At Budhewal mill, the power plant is being set up by Purab Infrastructure, Amritsar.

Giving more information, Capt Singh said that all these plants will start generating power by August 20, 2010. He said that the private companies would be given 15-year BOT period and after that these plants will be handed over to the respective mills. The minister said that these mills would earn an additional income of Rs 20 crore per year and this amount will be used for making payments to sugarcane growers.

The minister said that a private firm A-Z Infrastructure Ltd, Gurgaon, will set up these power generation plants at Nakodar, Fazilka and Morinda, the Saraya Industries Ltd, New Delhi will set up plants at Nawanshahar, Batala, Ajnala and Gurdaspur mills, the Spray Engineering Devices Ltd, Mohali will set up the plant at Bhogpur and Purab Infrastructure Projects Ltd, Amritsar, is setting up the power plant at the Budhewal mill. He said that besides setting up power plants, these companies will also modernise these mills.

He further said that later on effort will also be initiated for re-opening six more co-operative sugar mills which were lying closed. Terming it a historic development, the minister said that apart from co-operative sugar mills, sugarcane growers will also be benefited to a great extent.