The IIBI has sanctioned a term loan of Rs 8.25 crore to fund the project while the balance will be financed by the company's internal accruals.

Top sources of the company said the modernisation plan, which is basically aimed to replace the decade-old machinery with new ones, will be completed by the end of the current financial year. Currently, the New India management is in dialogue with the domestic sugar machinery manufacturers.

The recognised players in the field include Texmaco, another KK Birla group firm and Triveni Engineering. After the implementation of the project, New India's capacity to crush sugar canes is expected to improve to 18 lakh quintals from 13.86 lakh quintals recorded last year.