Sugar firm Balrampur Chini Mills on Saturday said its board has approved a higher investment of Rs 425 crore for a new distillery plant of 320 kilolitres per day (KLPD), which is expected to commence by December 2022.
The board meeting held on Saturday approved the “revised capex (capital expenditure) of Rs 425 crore for the 320 KLPD distillery plant”, the company said in a regulatory filing.
Balarampur Chini said its board on November 4, 2020, had approved a Rs 320-crore investment for the new plant.
“The increase in capex to the tune of Rs 105 crore is mainly owing to the inclusion of a 20 KLPD unit of extra-neutral alcohol (ENA), a higher storage capacity for raw material and finished goods, a sharp rise in steel prices and a change in designs of equipment to bring in more efficiency and embrace automation,” it added.
The company said it plans to borrow Rs 220 crore from banks under the scheme to extend financial assistance to enhance ethanol capacity as announced by the central government.
