GMR Industries to operate leased sugar factory

Mumbai: GMR Industries has successfully bid for taking on lease the partly completed sugar factory of Sri Dhanalaxmi Sahakari Sakkare Karkhane Niyamit in Belgaum, Kaarnataka on build-own-operate-and-transfer (BOOT) basis for a period of 25 years, the company said in filing with the Bombay Stock Exchange (BSE).

The lease agreement was entered into after the Karnataka high court upheld the grant of lease in favour of the company and dismissed a writ petition and writ appeals against it.

The sugar factory with a capacity of 2,500 tonnes per day and a cogen plant is in partially completed stage (i.e. 80 per cent completed). GMR Industries will complete the balance work of supply and erection and expects to commence crushing operations during 2008-09 sugar season.

The plant capacity will be expanded from 2,500 tpd to 4,000 tpd and the cogen capacity shall be expanded in a phased manner, GMR said in its communique to the BSE.