Dhampur Sugar expansion plans on schedule

Dhampur Sugar Mills Ltd has announced that the Board of Directors of the Company at its meeting held on July 11, 2006 has reviewed the status of expansion cum diversification Project (Phase I) of the Company. The project implementation is as per schedule. The New green field Project at Rajpura, Central UP is expected to commence operation from November, 2006. The Board has approved additional projects costing Rs 950 million in Phase I comprising of Distillary at Asmoli (Rs 400 million), Sugar Refinery at Rajpura (Rs 150 million) and Power co-generation at Mansurpur (Rs 400 million). Consequent to this increase, the Company shall become eligible for availment of incentive under UP Incentive Scheme for Sugar Mills for ten years instead of five years as the total investment by March 31, 2007 shall exceed from Rs 4,350 million to Rs 5,300 million.

Further the Company has informed that, the Board has also approved the Expansion cum Diversification Project (Phase II) of the Company with an investment of Rs 3,330 million comprising of new plant of 5000 TCD along with Power generation and Distillery at Village Maduban, in District Madhepura in Bihar (Rs 1,850 million), increase in power generation capacity at Dhampur (Rs 780 million) and at Rajpura (700 million). The green field project in Bihar shall be eligible for incentives announced by Bihar Government for a period of five years.

Source : Equity Bulls

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