The state-owned power distribution company, Maharashtra State Electricity Distribution Co Ltd (Mahadiscom), has refused to accept co-generation power from 12 sugar factories, stating that enough power is available in the market. The factories are in trouble, as there are no takers for their electricity.
Co-generation means producing two forms of energy from one fuel. The sugar factories consume their own bagasse to run their mills and the surplus energy generated is sold outside. The state government has a policy of co-generation, according to which sugar factories have been given a target of generating 2,000mw of power. At present, the state has 85 sugar factories generating about 1,585mw. The factories use some of this power for their own consumption and about 800mw is sold to Mahadiscom.
However, the government has refused to purchase this power from sugar mills after it found that the state has sufficient energy, an official from the energy department said. “Co-generated power is expensive, compared to other power that the state receives. At present, there is no need for purchasing more power,” he said.
The sugar factories that are affected due to the state’s decision include Dyaneshwar, Mula, Shrigonada and Ambalika in Ahmednagar, Rena in Latur; Sharad, Dalmia, Mahadik in Kolhapur; Ghodganga in Pune; Gokul, Siddheshwar and Bhima-Takla in Solapur.
Sugar factories that opt for co-generation get a subsidy from the government and loans from banks. The Centre has been also supporting co-generation power projects by offering them a back-ended subsidy. Fifty per cent of the subsidy is released for sugar factories that develop co-generation power projects in the cooperative sector, public sector, government undertakings and special purpose vehicles via the ‘build, own, operate, transfer’ model after issuance of purchase orders for larger equipment like boilers and turbines.