Sugar mills offer to add 100 mw power to Andhra grid

The sugar mills in Andhra Pradesh said they will be able add 100 mw power to the state grid, if the power tariff was raised for cogeneration. They said about 200 mw installed capacity is put to optimum use only during the sugarcane season and the capacity is idle in off-season.

At present, the mills are getting electricity at about Rs 2.90 a unit, and they are seeking it to be brought on industry par of Rs 5.50 a unit being offered for other channels. “We are willing to import the coal for optimum utilisation of the installed capacity of the power plants. We can give about 100 mw additionally to the state grid, if the price increases,” according to RS Bhale Rao, secretary of the South Indian Sugar Mills Association.

The sugar industry has already flagged this issue with the state government, and with the Andhra Pradesh Electricity Regulatory Commission, which will decide on the tariffs.

The sugar industry says cogeneration is one of the channels to make up for higher input costs of sugar production. The cost of service for the sugar factories is around Rs 31 a kg and is sold around Rs 40 after adding the wholesalers and retailers margin, transport, handling and other charges, he said.

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1 Response

  1. raj says:

    Sugar factories should not fall on sweet talks .
    AP is well known for hiney traps in power sectors . look the way they introduced Parallel operation charges and then pevied extra duty on captive generation
    Govts cannot be trusted on incentives . Punjab has intoduced sp levy of R 1.4 for inter state sale . It appears each state is separate country for power and each CM and its family are ruling tribe

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