Balrampur Chini Mills has received board of directors approval to revise the CAPEX of 320 KLPD Distillery Plant to Rs425cr from the previous Rs320cr.
The increase in CAPEX to the tune of Rs105cr are mainly owing to:
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Inclusion of 20 KLPD ENA plant, within the overall 320 KLPD distillery plant
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Higher storage capacity for raw material and finished goods
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Sharp rise in steel prices
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Change in designs of equipment's to bring in more efficiency and embrace automation
Balrampur Chini said, "The higher investment would result in higher efficiency, better recovery of ethanol from juice which will add to the bottom line and will result in better payback than envisaged earlier."
It also said that the plant will be a complete Zero Liquid Discharge plant (ZLD) equipped with incinerator boiler and turbine for cogeneration of power.
"The plant which is expected to be commissioned by December 2022 would operate on dual fuel i.e. on sugarcane juice during the season and on grains during off season. The plant is expected to generate annual revenue of around Rs650cr and has a cash pay-back period of less than 4 years," said the company.
Further, Balrampur Chini proposes to borrow Rs220cr (the same amount which was envisaged/ disclosed earlier}, from banks under the Scheme for extending financial assistance for enhancement of Ethanol capacity as announced by the Government of India. Balance amount will be funded through internal accruals. The Company has already received in-principle approval from the Department of Food and Public Distribution, Government of India, confirming the eligibility for interest subvention on said loan of Rs220cr.
At around 1.39 pm, Balrampur Chini was trading at Rs226.50 per piece down by 3.21% on Sensex.
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