India launches its first dedicated investment policy for the sugar industry

The Indian state of Bihar has introduced a dedicated investment policy for the sugar industry and plans to open 25 new sugar mills and restart nine closed plants over the next five years. The new program provides direct grants and land incentives for investors.

A new sugar mill with a minimum crushing capacity of 3.5 thsd tons per day will be eligible to receive 140 mln rupees annually for five years. Total support will amount to 700 mln rupees, or about $7.3 mln per plant.

Larger projects will qualify for additional incentives. For every extra 100 tons of daily capacity above the 3.5 thsd ton threshold, the government will provide another 20 mln rupees. In addition, a mill with a capacity of 5 thsd tons per day may receive up to 40 acres of land on lease for a symbolic payment of 1 rupee, while a 3.5 thsd ton plant may receive up to 25 acres.

Existing sugar mills will also be eligible for support. The government will provide 150 mln rupees for a capacity expansion of 1 thsd tons per day, plus another 15 mln rupees for every additional 100 tons of expansion.

Bihar authorities expect the new policy to attract large-scale investment in sugarcane processing and revive the industry in the state. Bihar has become the first state in India to introduce a dedicated investment incentive framework exclusively for the sugar sector.

Tags: sugar, India