Govt eases molasses norms

Giving a big relief to sugar mills which were grappling with excess molasses, the state government allowed them to use B-Grade molasses for manufacture of ethanol, which in turn could be mixed with petrol and used as bio-fuel. The decision was taken at a Cabinet meeting chaired by Chief Minister Yogi Adityanath in Lucknow on Tuesday.

Principal Secretary (Excise) Kalpana Awasthi said that earlier only C-Grade molasses was used for the manufacturing of ethanol. With the state coming up with record production of sugarcane, the reserve of molasses increased and was hampering cane crushing. “Now sugar mills will be allowed to use B- and C-Grade molasses for the manufacturing of ethanol. This will ease the pressure and expedite crushing,” she said. 

“But as the Centre has increased blending of ethanol with petroleum products from the existing 5 to 10 per cent, which was likely to go up to 20 per cent in future, hence the additional ethanol will help in production of bio-fuel,” Awasthi said.

Molasses is used in the pharma industry as well as in the manufacture of liquor. Of the total molasses produced in the state, 60 per cent are of B-Grade and the rest 40 per cent are of C-Grade.

The government also re-introduced Mandi Tax compounding system for gur and khandsari units in the state. The system was announced in 2015-16 but was disbanded in later years. Now units will have to pay 10 per cent hiked compounding fee for three fiscal - 2016-17, 2017-18 and 2018-19.

In another decision, the government also approved to provide sops to 10 industrial units in the form of exemption of GST, stamp duty and electricity duty. These units will be set up in different parts of the state with an investment of Rs 3630 crore that will generate around 3500 jobs.

While ACC will set up its unit worth Rs 525 crore in Amethi, Amba Shakti will set shop in Bulandshahr with an investment of Rs 183 crore and Gallant Spa in Gorakhpur with an investment of Rs 509 crore. Kanodia will set up  four units, two each in Farrukhabad and Pratapgarh by investing Rs 364.69 crore each while Suchi Agencies will set up two units, one in Rae Bareli and another in Allahabad, with an investment of Rs 276.23 crore each. The Panwara group will set up its unit in Meerut at a cost of Rs 400 crore.

The Cabinet also decided to provide 5.09 acres of land to VRS Health and  Research Institute in Chandauli to set up a super speciality hospital of 400 beds. The hospital will provide cheap medical treatment of all streams, including Ayush and Ayurvedic, and the project is expected to generate around 2000 jobs.

In the first phase, the Bangalore-based company will start a 175-bed hospital along with other medical facilities by January 2019.

The government also announced a new Til export policy for the next five years providing sops to exporters and waiving of Mandi Tax and Development Cess.