Schemes of By-Products Branch

The Government of Maharashtra announced a policy on February 20, 2008, to provide financial assistance to cooperative sugar factories in the state for establishing co-generation projects.

As per this government resolution, 30% share capital is primarily provided from the Sugar Development Fund and Green Cess to promote co-generation projects through cooperative sugar factories.Cooperative sugar factories must initially raise their own 10% share capital, of which the government will provide up to a maximum of 5% from the Green Cess. Factories are required to raise 60% of the amount through loans from banks or financial institutions. The remaining required amount is to be obtained by the factories as share capital from the Sugar Development Fund. If the amount in the Sugar Development Fund is less than 30%, the government will provide an additional 5% share capital from the Energy Department's Green Cess Fund, for a total maximum participation of up to 10%. If funds available from the Green Cess sources are insufficient, the remaining amount will be provided by making budgetary provisions from time to time.

In line with the Central Government's Notification Dated 27/02/2015, cooperative and private sugar factories in the state that exported raw sugar produced during the 2014-15 season, and those that supplied local raw sugar under the Import Invalidation of Advance Authorization Scheme, were eligible for an incentive of Rs. 1000/- per metric ton, subject to the conditions outlined in the Central Government's notification. This incentive was approved for sugar factories, with the condition that the farmers' FRP (Fair and Remunerative Price) be paid as the top priority. It was obligatory for factories to refine and export the domestic raw sugar within 90 days, as stipulated by the Import Invalidation of Advance Authorization Scheme.

Under this scheme State Government has approved to provide a subsidy of Rs. 1.50 per unit of electricity exported to Mahavitaran from bagasse-based co-generation projects (cooperative and private) of sugar factories in the state. The subsidy will be provided for 1 year, limited to a maximum of Rs. 6.00 per unit. Cogeneration projects with rates exceeding Rs.6 per unit will not be eligible for this subsidy.

The subsidy will not exceed Rs1.50 per unit. If a subsidy of Rs 1.50 per unit is provided and this results in a per unit cost exceeding Rs 6.00, then a subsidy will be limited to Rs 6.00 per unit. However even with a subsidy of Rs 1.50 per unit, the total per unit cost remains below Rs 6.00 then the subsidy will be provided at the rate of Rs 1.50 per Unit.