A typical sugar cane has nearly 11% sugar, 30% bagasse and balance water. A conventional sugar mill crushes sugar cane and produces sugar and sells molasses and surplus bagasse and therefore unable to withstand market fluctuations in sugar price. The Integrated cane Processing Project (ICPP) concept, envisages simultaneous generation of electricity and ethanol either from molasses or directly from cane juice. It is also possible to recover and use water from sugar cane. Thus the ICPP would have adequate flexibility to tune up production according to market dynamics Moreover, it is possible to get more revenue by selling more surplus power beyond the crushing season which is the period of peak demand of the Grid.
The project is being developed as an Integrated Cane Processing Plant (ICPP) with a Diversified Product Portfolio and a De-risked Business model, using the state of Art Technology. The Integrated Project is aimed at utilisation of sugar cane to its full potential including all of its by-products such as bagasse, molasses, press mud and water. This will not only insulate the Project from any cyclical variation of sugar industry but will also ensure the high and consistent returns for sugar cane to the farmers in the region.
The project is located in the cane surplus Distt of Parbhani wherein Government of Maharashtra during last year had to distribute Rs 20.7 Crore to the farmers for non-crushing of standing Sugar cane with aggregate cultivation of 8280 Ha. The total disbursement of compensation to the farmers in the entire Aurangabad region was to the tune of Rs. 114.33 Crores. Therefore the commissioning of this project will also help in reducing the burden on the state exchequer