ETHANOL IN Maharashtra IMPROVE REVENUE: REDUCE SURPLUS SUGAR & INCREASE ETHANOL · 2020. 10. 3. ·...

ETHANOL IN MaharashtraIMPROVE REVENUE: REDUCE SURPLUS

SUGAR & INCREASE ETHANOL

1

Sugar mills and production in Maharashtra

All-India Maharashtra

No. of operating mills 532 205

Private 328 102

Cooperative 195 93

PSU 9 0

Sugar Production 2018-19 (lakh tons) 331.61 107.20

Private 232.78 43.12

Cooperative 98.83 64.07

Sugar Production 2019-20 (lakh tons) 273.34 61.68

Private 196.69 22.61

Cooperative 76.65 39.07

2

Distilleries and capacity to manufacture ethanol

3

Ethanol Supply Year

(ESY)

No. of distilleriesEthanol

(crore litres/year)

Private Coop.Stand-alone

Total Private Coop.Stand-alone

Total

All-India 2019-20 capacity

126 59 46 231 301 55 71 427

Maharashtra*(2019-20) capacity

34(102)

36(93)

26 96 58 36 33 128

MaharashtraSupply LOIs for 2019-20

NA NA NA 27.95

MaharashtraSupply LOIs for 2018-19

NA NA NA 84.79

Reduce 25% all-India surplus sugar: 2-3 years

• 320-330 lakh tons of all India sugar production

– 60-70 lakh tons surplus over domestic requirement of around 260 lakh tons

• Currently, that surplus of 60 lakh tons is getting exported

– Requires export subsidy

• WTO allows export subsidies only till Dec 2023

– Hence, Indian industry has to plan to divert the surplus of 60-70 lakh tons of sugar

into ethanol in next 2-3 years

– Sugar export reduction by 20 lakh tons every year till 2023, and increased diversion

of equivalent sugar into ethanol every year over next 3 years

• Need additional molasses/cane juice ethanol production capacity of 400-450

crore litres (at all India level)

4

Reduction in sugar for Maharashtra in 2-3 years

• Maharashtra sugar production in 2018-19 is around 107 lakh tons

• 25% reduction = 27-28 lakh tons of surplus sugar

• Need creation of approx. 162 crore litres of additional molasses/cane juice

based ethanol capacity

• GOI plans to cancel approvals if significant progress not made/ no information

5

Status under interest subvention scheme

No. of projectsAddl. Capacity

(KL/Day)

In principle approval by DFPD 182 7280

Sanctioned and Disbursed 19 775

Sanctioned but not disbursed 2 90

Approached to Banks but pending 11 695

Rejected 6 195

Information Not Recd. 140 5355

Rejected 6 195

Ethanol supply target for 20-21 for Maharashtra

• Ethanol capacity of 128 crore litres is based on C- molasses

– Use of B-molasses and cane juice increases capacity by 25%

– But some may continue C-molasses use, hence capacity increase taken at 15%

more i.e. at 145 crore litres

– Some part of the 145 cr. litre capacity will be used for alcohol etc.

• Hence, ethanol supply target for 2020-21, fixed by GOI for Maharashtra, at

108.45 cr. litres (an increase by 23.5 cr. litres over 2018-19 LOIs)

– Individual targets for each distillery in Maharashtra has also been calculated

and advisory issued by DFPD, GOI to State Governments on 13th Aug, 2020

6

Feedstock-wise ethanol in Maharashtra

• Considering 107 lakh tons of sugar and 1200 lakh tons of cane crushing

– At 4.5% of cane crushed, 54 lakh tons of C-molasses will be produced

– At 225 litre per ton of C-molasses, 120 crore litres of ethanol can be produced

• If all mills only produce and use/sell B-molasses

– At 7.25% of cane crushed, 87 lakh tons of B-molasses will be produced

– At 320 litres per ton of B-molasses, 278 crore litres of alcohol/ethanol can be produced

– This will reduce 46 lakh tons of sugar production from Maharashtra

• However, practically there will be a combination of diversion of cane juice,

B-molasses and C-molasses use for making ethanol

• So, from both capacity and feedstock point, Maharashtra can achieve

target of 108.45 crore litres of ethanol in 2020-21

7

8

Benefits of Conversion of Cane Juice to Ethanol

• Improves cash flows of sugar mills in Maharashtra

• For every 10 lakh tons of sugar diverted, 60 crore litres of ethanol produced

• 60 crore litres from B-molasses will give around Rs.3300 crore

• For the additional 23.5 crore litres of ethanol (as per target given by GOI), mills will get

Rs.1300 crore of cash flows

• Otherwise Rs.1300 crore will be blocked in sugar for almost 15 months

• Timely and expeditious payment of cane price to sugarcane farmers, as

compared to surplus sugar production

Recent policy initiatives to increase capacity & supplies

• Approved suppliers list for 5 years from 2020-21 ESY

– Reduces paperwork, resubmission of licenses etc. and thereby reduces delays

• EOIs only for supplies on monthly basis, and every year

• OMCs have reduced security deposit and penalty amounts from 5% to 1%

• Transport rates for ethanol expected to be as per actuals/ as for petrol

• Interest subvention scheme re-introduced by DFPD on 15th Sept. 2020

– Sugar mills/standalone distilleries can apply afresh in next one month

• Banks & OMCs wiling to sign TPAs and loan recovery thru’ escrow accounts

– Gives comfort to banks: will allow mills with weak balance sheets to get loans

9

More policy initiatives ……… (contd.)

• Government considering

– 12% ethanol blending (at least in UP, Mah & Karn. and neighbouring States)

– Considering inclusion of ‘Dual Feed’ distilleries under interest subvention

scheme

• Industry requesting

– To include storage for feedstock and ethanol under interest subvention

scheme

10

State Govt. policies: Maharashtra

Department/ Authority

Issue Recommendation

State Excise• Permission for use of B-

molasses/ cane juice• Permission for transport of

molasses for inter-Statetransfer

• Permission for sale of B-Heavy molasses

• Freedom to use cane juice

• Be permitted as some molasseswill be transferred fromMaharashtra to Karnataka, withinthe group units

• Sale of B-Heavy molasses shouldbe allowed

State Pollution Control Board

• Quick approvals for ECs

• No need of CTE if EC issued

• No change in EC for use of B-molasses & cane juice increasing production

• Process should be fast, to give ECs in 8-10 months

• Environment Ministry, GOI, has directed CTE not reqd. if EC issued

• Once approved Ch. Engr. gives ‘no increase in pollution load’ certificate, 15 days max. be taken

11

12

Current year’s contracts and supplies

(figures in cr. litres)

2019-20

Raw Material No. of Sugar Mills Quantity allocated

SCJ (Sugarcane Juice) 6 2.81

BHM (B-Heavy Molasses) 26 15.16

CHM (C-Heavy Molasses) 37 9.97

Total --- 27.95

• One more tender/EOI for 2019-20 ESY expected in next week

• Mill-wise supplies vis-à-vis contracts monitored at highest level, and other

penal actions being planned, beyond financial penalties

• Everyone has to honour the contract

THANK YOU

13

14

Sl. No.

Name of the applicant Sugar Mill / distillery

Amount of loan (crore

Rs.)

Purpose of sanction

Proposed additional capacity (KLPD)

Status

Sanctioned by

Disbursal

DFPD Bank

1 Aayan Multitrade LLP 68.12 63.3 30.11Proposals for New distillery

60 Approached To Bank and Loan Disbursed

2 Aayan Multitrade Llp 68.12Expansion of Existing Distillery

60 Approached To Bank

3Agasti Sahakari Sakhar

Karkhana Ltd 37.5 54.3 49.36

Proposals for New distillery


4 Ajara Shetkari SSK Ltd 43.12Proposals for New distillery

30 No Response

5Ambaji Trading Company

(Ambaji Sugar)43.5


30 No Response

6Ashok Sahakari Sakhar

Karkhana Ltd23

Incineration of Boiler

No Response

7Ashok Sahakari Sakhar

Karkhana Ltd, 47.77

Expansion of Existing Distillery

70 No Response

8 Atharv Intertrade Pvt Ltd 38.3Expansion of Existing Distillery

45 No Response

9 Atharv Intertrade Pvt Ltd 31Incineration

of BoilerNo Response

10Babanraoji Shinde Sugar &

Allied Industries Ltd68.12


60 No Response

11 Baliraja Sakhar Karkhana Ltd 57.75Proposals for New distillery

45 No Response

12 Baramati Agro Ltd 10.5Proposals for New distillery


13 Baramati Agro Ltd 20.8Incineration

of BoilerApproached To Bank and Loan Disbursed

15

14Bhaurao Chavan Sahakari

Sakhar Karkhana Ltd29.21


30 No Response

15Bhima Sahakari Sakhar

Karkhana68.12


60 No Response

16Bhimashankar Sahakari

Sakhar Karkhana Ltd57.8 62.05


45 Approached To Bank and Loan Sanctioned

17 Cane Agro Energy (India) Ltd 51.81Proposals for New distillery

45 No Response

18Chhatrapati Sahakari Sakhar

Karkhana Ltd43.5


30 No Response

19 DDN SFA Ltd, 37.9Expansion of Existing Distillery

30 No Response

20 Deccan Sugar Pvt Ltd 96.6Proposals for New distillery


21Dharashiv Sakhar Karkhana

Ltd50


45 No Response

22 Fabtech Sugar Pvt. Ltd. 24.91Incineration


23 Gokul Mauli Sugar Ltd 68.12Proposals for New distillery

60 No Response

24Gokul Sugar Industries

Limited,50.75


35 No Response

25 Green Power Sugar Ltd 19.5Incineration


26 Indreshwar Sugr Mills Ltd 22.18Expansion of Existing Distillery

35 No Response

16

27Jagruti Sugar & Allied

Industries Limited58.92


60 No Response

28 Jai Hind Sugar Pvt Ltd 45.9 24.9 24.9Proposals for New distillery


29 Jai Shiv Shankar SSK Ltd 20Proposals for New distillery

30 No Response

30 Jakraya Sugar Ltd 60Expansion of Existing Distillery

90 No Response

31 Jakraya Sugar Ltd 18.6Incineration


32Jarandeshwar Sugar Mills Pvt

Ltd68.12 102.65 102.65



33 Jawahar Shetkari SSL Ltd 96.6Proposals for New distillery

100 Yet not Approached

34 Jaywant Sugars Ltd 55 55 55.00Proposals for New distillery


35 Kancheshwar Sugar Ltd 57.8 48.5 48.50Proposals for New distillery


36Karamyogi Shankarraoji Patil

SSK Ltd45.12


60 No Response

37Karamyogi Shankarraoji Patil

SSK Ltd31


No Response

38Karmayogi Ankushrao Tope

Samarth Sahkari Sakhar Karkhana Ltd

15Incineration


39 Khandoba Distilleries Ltd 26.49Expansion of Existing Distillery


40Khatavman Taluka Agro

Processing Ltd27

proposals for new distillery

45 No Response

41 Kisanveer Satara SSK Ltd 22.77Incineration


17

45 Kumbhi-Kasari Ssk Ltd 28.5Expansion of

Existing Distillery

60

Rejected. (i) Sugar Mill is outside the area of operation of bank.

(ii) Details of any consortium partner not provided(iii) Clear collaterals security not submitted

46Kunturkar Sugar & Agro Pvt

Ltd43.5


30 No Response

47 Lokmangal Agro Industries Ltd 28.8Incineration


48Lokmangal Mauli Industries

Ltd83.4


80 No Response

49Lokmangal Sugar Ethanol &

Cogeneration Ind. Ltd83.4


80 No Response

50Loknete Baburao Patil Agro

Industries Ltd,15


No Response

51Loknete Balasaheb Desai Ssk

Ltd, 43.5


30 No Response

52Loknete Sunderraoji Solanke Sahakari Sakhar Karkhana Ltd

57.8Expansion of

Existing Distillery

45 No Response

53Madhukar Sahakari Sakhar

Karkhana Ltd23


No Response

54Madhukar Sahakari Sakhar

Karkhana Ltd28.5


60 No Response

55Malegaon Sahakari Sakhar

Karkhana Ltd34.5


No Response

56Malegaon Sahakari Sakhar

Karkhana Ltd 29.77


40 No Response

57Manas Agro Industries And

Infrastructure Ltd38.3


45 No Response

58Manas Agro Industries And

Infrastructure Ltd,42.75


No Response

59Manganga Sahakari Sakhar

Karkhana Ltd43.5


30 No Response

18

60Martand Natural Sweetners

Ltd25.31


30 No Response

61Matoshri Laxmi Sugar Co-Gen

Ind. Ltd.57.8


45Rejected. NPA

category

62Mohanrao Shinde Sahakari

Sakhar Karkhana Ltd,55.03



63Mula Sahakari Sakhar

Karkhana Ltd19.5


Not Availed

64Mula Sahakari Sakhar

Karkhana Ltd,14.25

Expansion of Existing

Distillery15 Not Availed

65Natural Sugar & Allied

Industries Ltd23


Rejected. Financial Parameters not satisfactory

66 Neera Bhima SSK Ltd 45.12Expansion of

Existing Distillery

60 No Response

67 Neera Bhima SSK Ltd 31Incineration


68 NSL Sugars Ltd 77.06Expansion of

Existing Distillery

50 No Response

69 Olam Agro India Pvt. Ltd 68.12Proposals for New distillery

60 No Response

70

Padambushan Krantiveer Dr. Nagnathanna Nayakwadi

Hutatma Kisan Ahir Sahakari Sakhar Karkhana Ltd

47.77Expansion of

Existing Distillery

70 Yet not Approached

71

Padambushan Krantiveer Dr. Nagnathanna Nayakwadi

Hutatma Kisan Ahir Sahakari Sakhar Karkhana Ltd

20Incineration

of BoilerYet not Approached

72Padmashri Dr. D Y Patil

Sahakari Sakhar Karkhana Ltd57.8 57.8 23.43



73Padmashri Dr. Vithalrao Vikhe

Patil Ssk Ltd10


Distillery20 No Response

74 Pannageshwar Sugar Mills Ltd 55.5Proposals for New distillery

60 No Response

19

75Parag Agro Foods & Allied

Products Pvt Ltd,68.12


60 No Response

76 Piyush Sugar & Power Pvt Ltd, 60Expansion of

Existing Distillery

60 No Response

77Prasad Sugar & Allied Agro

Products Ltd35 51.61 51.56



78 Purna SSK Ltd 68.12Proposals for New distillery

60 No Response

79 Purna SSK Ltd 57.8Proposals for New distillery

45 No Response

80 Quinergy Industries Ltd 68.12Proposals for new distillery

60 No Response

81 Rajarambapu Patil SSK Ltd 41.36Expansion of

Existing Distillery

55 No Response

82 Rajarambapu Patil SSK Ltd, 34.5Incineration


83 Rajgad SSK Ltd 57.8Proposals for New distillery

45 No Response

84Raosahebdada Pawar

Ghodganga Sahakari Sakhar Karkhana Ltd

28.5Expansion of

Existing Distillery

30 No Response

85Raosahebdada Pawar

Ghodganga Sahakari Sakhar Karkhana Ltd

23Incineration


86Reliable Sugar & Distillery

Power Ltd37.98


30 No Response

87Rena Sahakari Sakhar

Karkhana Ltd15


No Response

88S J Sugar Distillery and Power

Pvt Ltd37.5


30 No Response

89 Sachin Ghayal Sugar Pvt Ltd 57.6Proposals for New distillery

60 No Response

20

90Sadguru Sri Sri Sakhar

Karkhana Ltd64.22


50 No Response

91

Sahakar Maharshi Shankarrao Kolhe SSK Ltd, (formerly

known as The Sanjivani (Takli) Sahakari

Sakhar Karkhana Ltd.)

33.16Expansion of

Existing Distillery

45 No Response

92

Sahakar Maharshi Shankarrao Kolhe SSK Ltd, (formerly

known as The Sanjivani (Takli) Sahakari

Sakhar Karkhana Ltd.)

38Incineration


93Sahakar Maharshi Shankarrao Mohite Patil Sahakari Sakhar

Karkhana Ltd68.12


60 No Response

94Sahakar Maharshi Shivajirao Narayanrao Nagawade SSK

Ltd28.5



95Sahakar Maharshi Shivajirao Narayanrao Nagawade SSK

Ltd23


No Response

96Sahakar Shiromani Vasantrao

Kale SSK Ltd20


No Response

97Sahakar Shiromani Vasantrao

Kale SSK Ltd28.5



98Sahakarmaharshi Bhausaheb

Thorat Sahakari Sakhar Karkhana Ltd

64.22Proposals for New distillery

50 No Response

99Sahyadri Sahakari Sakhar

Karkhana Ltd96.6


100 No Response

100Sahyadri Sahakari Sakhar

Karkhana Ltd43.5


100 No Response

101Sant Muktai Sugar & Energy

Limited,38.48


30 No Response

102Sar Senapati Santaji Ghorpade

Sugar Factory Ltd11.6



21

103Shankar Sahakari Sakhar

Karkhana Ltd,68.12


60 No Response

104Sharad Sahakari Sakhar

Karkhana Ltd43.5


30 No Response

105 Sharayu Agro Industries Ltd 32.5Incineration


106 Sharayu Agro Industries Ltd. 11.47Expansion of Existing Distillery

60 No Response

107 Shiur Sakhar Karkhana Ltd 43.5Proposals for New distillery

30 No Response

108Shraddha Energy &

Infraprojects Private Limited78.62


80 No Response

109Shree Chhatrapati Sahu SSK

Ltd23


No Response

110Shree Datta Shetkari Sahakari

Sakhar Karkhana Ltd31


No Response

111Shree Datta Shetkari Sahakari



90 No Response

112Shree Ganapati Agro Products

& Power (India ) Ltd111.56


125 No Response

113Shree Kranti Sugar and Power

Ltd20


30 No Response

114Shree Pandurang Sahakari



Approached To Bank

115Shree Pandurang Sahakari




116Shree Rameshwar Sahakari

Sakhar Karkhana,43.5


30 No Response

22

117 Shree Renuka Sugars Ltd 58.92Proposals for

New distillery

60 No Response

118 Shree Saibaba Sugars Ltd 43.5Proposals for

New distillery

30 No Response

119Shree Satpuda Tapi Parisar SSK

Ltd25.59


No Response

120Shree Siddheshwar Sahakari



100 No Response

121Shree Tatyasaheb Kore Warna

SSK Ltd72.89


140 No Response

122Shree Tatyasaheb Kore Warna

SSK Ltd41.06


No Response

123Shreenath Mhaskoba Sakhar

Karkhana Ltd.21.08 12 6.05


Approached To Bank and Loan Disbursed

124Shreenath Mhaskoba Sakhar

Karkhana Ltd.20


55 No Response

125Shri Vitthalsai Sahakari Sakhar

Karkhana Ltd36

Proposals for New

distillery30 Approached To Bank

126 Shri Adinath SSK Ltd 43.5Proposals for

New distillery

30 No Response

127 Shri Ambalika Sugar Pvt Ltd 63.1 14.82 12.98Expansion of

Existing Distillery


128 Shri Chhatrapati SSK Ltd 68.12Proposals for

New distillery

60 No Response

129Shri Dudhganga Vedganga

Sahakari Sakhar Karkhana Ltd68.12

Proposals for New

distillery60 No Response

130 Shri Dutt India Private Ltd. 68.12Expansion of

Existing Distillery

60 No Response

131 Shri Gurudatt Sugars Ltd 68.12Proposals for

New distillery

60 No Response

132 Shri Kedareshwar SSK Ltd 43.5Proposals for

New 30 Approached To Bank

23

136Shri Saikrupa Sugar & Allied

Industries Ltd50


45 No Response

137 Shri Sant Damaji S.S.K. Ltd. 57.8Proposals for New distillery

45 No Response

138Shri Sant Kurmadas Sahakari



30Rejected.

Negative Networth of Company

139Shri Sant Tukaram Sahakari



45 No Response

140 Shri Someshwar SSK Ltd 28.5Expansion of

Existing Distillery

30 No Response

141Shri Someshwar SSK Ltd.,

Someshwarnagar23


No Response

142 Shri Vithal SSK Ltd 47.77Proposals for New distillery

70 No Response

143 Shri Vithal SSK Ltd 34.5Incineration


144Shri Vridheshwar Sahakari

Sakhar Karkhana ltd57.8



145Siddhi Sugar And Allied

Industries Ltd16.62 31.41 31.41



146Sitaram Maharaj Sakhar

Karkhana (Khardi) Ltd43.5


30 No Response

147 Solapur Sugar Ltd 68.12Proposals for New distillery

60 No Response

148Sonhira Sahakari Sakhar

Karkhana Ltd33.04


40 No Response

149Sonhira Sahakari Sakhar

Karkhana Ltd34.5


No Response

150 Sugar Grid Ltd 37.9Proposals for New distillery

30 No Response

151Swami Samarth Sugar & Agro

Industries Ltd27


45 No Response

24

152 Swaraj India Agro Ltd 68.12 84.00 84.00Proposals for

New distillery


153The Kadwa Sahakari Sakhar

Karkhana Ltd43.5

Proposals for New


154The Saswad Mali Sugar Factory

Ltd21.66


No Response

155The Saswad Mali Sugar Factory

Ltd10


50 No Response

156 The Ugar Sugar Works Ltd. 80.71Expansion of

Existing Distillery


157Tokai Sahakari Sakhar Karkhana

Ltd43.5

Proposals for New


158Tridhara Sugar Ltd. (Operated by Mohtadevinarsinha Sugar &

Agro Products LLP)43.5

Proposals for New


159 TwentyOne Sugars Ltd 78.19 74.8 36.77Proposals for

New distillery


160 Udagiri Sugar & Power Ltd 38.3Expansion of

Existing Distillery

45 No Response

161 Udagiri Sugar & Power Ltd 27Incineration


162 Udagiri Sugar & Power Ltd. 36.25Expansion of

Existing Distillery

25 No Response

163 Utech Sugars Ltd 37.1Proposals for

New distillery


164 Utopian Sugars Ltd 57.8Proposals for

New distillery

45 Approached To Bank and Loan Sanctioned

165 Vaidyanath SSK Ltd 23Incineration

of BoilerYet not Approached

166 Venkateshkrupa Sugar Mills Ltd 68.12Proposals for

New distillery

60Rejected. Sugar Mill has given Letter not to take benifits under this

scheme

167Vikas Sahakari Sakhar Karkhana

Lt23 23 8.27



Vikas Sahakari Sakhar Karkhana Proposals for

25

172 Vitthal Corporation Ltd 43.5Expansion of

Existing Distillery

30 No Response

173 Vitthal Refined Sugars Ltd 68.12Proposals for New distillery

60 No Response

174Vitthalrao Shinde Sahakari

Sakhar Karkhana Ltd,80



175Yashwant Sugar & Power Pvt

Ltd96.6


100 No Response

176Yashwantrao Mohite Krishna

S.S.K. Ltd39.58 15.78 15.78



177Yashwantrao Mohite Krishna

S.S.K. Ltd,28.5 17.44 17.44



178 Yedeshwari Agro Products Ltd. 51Proposals for New distillery

45 No Response

179 Yogeshwari Sugar Ind. Pvt. Ltd 55.5Proposals for New distillery

60 No Response

180 Shri Dutt India Private Ltd 68.12Proposals for New Distillery

60 No Response

181Tapkir ethanol and energy pvt

ltd42

Proposals for New Distillery

50 No Response

182Shri Sant Shiromani Maruti

Maharaj SSK Ltd64.24

Proposals for New Distillery

60 No Response

TOTAL 8069.24 793.36 598.21 7280

ETHANOL IN Maharashtra IMPROVE REVENUE: REDUCE SURPLUS SUGAR & INCREASE ETHANOL · 2020. 10. 3. ·...

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Transcript of ETHANOL IN Maharashtra IMPROVE REVENUE: REDUCE SURPLUS SUGAR & INCREASE ETHANOL · 2020. 10. 3. ·...