15 sugar mills to get NCDC funding for fuel, fertiliser units

Union Home and Cooperation Minister Amit Shah announced that 15 cooperative sugar mills across India will receive funding from the National Cooperative Development Corporation (NCDC) to set up Compressed Biogas (CBG) and potash production plants.

Shah made the announcement while inaugurating a CBG unit, a spray dryer, and a potash granule manufacturing facility at Sahakar Maharshi Shankarrao Kolhe Sahakari Sakhar Karkhana in Kopargaon, Ahilyanagar district, Maharashtra. The CBG unit will produce clean biogas from sugarcane waste, the spray dryer is used to convert liquid products into dry powders, and the potash facility will make fertiliser granules for farming.

“These projects are a new chapter for India’s cooperative sector. The Modi government will select 15 sugar mills for NCDC funding to set up similar plants across the country,” Shah said.

The units at Kopargaon are the first of their kind in India. The CBG plant, built at a cost of Rs 55 crore, is designed to produce 12 tonnes of compressed biogas and 75 tonnes of potash every day. Currently, both products are imported, and this initiative is expected to save foreign exchange while promoting the Atmanirbhar Bharat vision.

The project has already tied up with major firms like Gas Authority of India Limited (GAIL), Bharat Petroleum Corporation Limited (BPCL), Indian Farmers Fertiliser Cooperative Limited (IFFCO), and Rashtriya Chemicals and Fertilisers to purchase the produced CBG, promoting a circular economy.

Praising Maharashtra’s cooperative legacy, Shah said the state, which pioneered the sugar cooperative movement, should now lead India in circular economy initiatives. He urged Chief Minister Devendra Fadnavis and Deputy Chief Ministers Eknath Shinde and Ajit Pawar to support such mills, promising full assistance from the Union government.

Shah also called for diversification, suggesting that every profit-making sugar mill should explore fruit processing. “This will encourage fruit cultivation and provide additional income to mills,” he said.

Highlighting other government initiatives, Shah mentioned the Mission for Aatmanirbharta in Pulses, which has been approved with a budget of Rs 11,440 crore for 2025-26 to 2030-31. Under this programme, 1,000 processing units will be set up, and 38 lakh high-quality seed kits will be distributed to farmers.

He further noted that recent Goods and Services Tax (GST) reforms have eased costs for farmers by reducing taxes on tractors, harvesters, irrigation systems, and poultry machinery to five per cent.

“Prime Minister Narendra Modi has made India the fourth-largest economy. To reach the top, embracing domestic production is essential. Every citizen should support swadeshi products,” Shah added.