The project list includes Vasantdada Cooperative Sugar Factory, Sangli (crushing capacity 7,500 tonnes per day (TPD), 35 mw), Rajarambapu Patil Cooperative Sugar Factory, Sangli (4,000 TPD, 24 mw), Krishna Cooperative Sugar Factory, Satara (5,000 TPD, 30 mw), Datta Cooperative Sugar Factory, Kolhapur (2,500 TPD, 16 mw), Paurna Cooperative Sugar Factory, Parbhani (2,500 TPD, 16 mw), Padmashari Vitthalrao Vikhe-Patil Cooperative Sugar Factory, Ahmednagar (4,500 TPD, 20 mw), Datta Cooperative Sugar Factory, Kolhapur (5,000 TPD, 41 mw), Shri Dnyaneshwar Cooperative Sugar Factory, Ahmednagar (3,000 TPD, 75 mw), Terna Shetkari Cooperative Sugar Factory,Osmanabad (3,500 TPD, 75 mw), Shirpur Shetkari Cooperative Sugar Factory, Dhule (2,500 TPD) and Ajinkyatara Cooperative Sugar Factory, Satara (3,000 TPD, 9 mw).

Mantralaya sources told The Financial Express that a sugar cooperative will give its land on a nominal rent of Re 1 for 20 years to the independent power producer (IPP). The cooperative will provide bagasse and water to the IPP at no cost.

The IPP will provide necessary steam for a whole year to the cooperative and during crushing season. It will give 12mw of the total power generated to the Maharashtra State Electricity Board (MSEB) while 8mw will be provided during the non-crushing period.

The project period will be 20 years and thereafter a special valuer will be appointed for the valuation of property and technology. The entire project will be handed over to the sugar cooperative if both parties arrive at a consensus on its value or the IPP will shift the plant elsewhere and hand over the vacant land to the sugarcooperative.

Sources said that MSEB will purchase energy generated from the co-generation plant at Rs 2.25 per unit based on the 1994-95 rate which will be increased at 5 per cent annually. This will be available to developers for the first 10 years of the project life. For the next three years, there will be no escalation and the rate will be kept flat. Thereafter, for the balance life of the project (seven years), an escalation of 5 per cent will be available to the developers.

The third party sale will be allowed to any one party and there will be no duty for captive use. Protection to foreign exchange fluctuation risk to a certain extent will be given to the foreign exchange debt component of the total investment of the project. In a given year, if forex fluctuation is more than 5 per cent, protection will be available to the developers for variation in excess of 5 per cent of the foreign exchange loan component of the investment. No protection will be available to the equity portion.

Thedebt-equity ratio in a co-generation project is usually 75:25. Protection will be available to 65 per cent of the tariff amount in the first year and will decrease by 10 per cent annually. At the end of the 10th year, foreign exchange debt would have been repaid. Thereafter, such protection will not be needed.