SUGARFED PUNJAB
The Punjab State Federation of Cooperative Sugar Mills
SUGARFED PUNJAB
The Punjab State Federation of Cooperative Sugar Mills
1954
3000 TCD
1955-56
109.24 Acre
Kissan Rest House
Beds with mattresses, fans, LED TV
Brick flooring cane yard & Streetlights
The Bhogpur Cooperative Sugar Mill was registered under the Cooperative Societies Act-II, 1912 (Punjab), in 1954 and commenced its first crushing season in 1955–56. It is the Oldest sugar mill in Punjab and, until 2019, operated with an old steam engine having a crushing capacity of 1016 TCD.
Following a decision by the Council of Ministers, Government of Punjab, the plant and machinery of the Faridkot Cooperative Sugar Mill—non-operational since 2006—were transferred to Bhogpur Sugar Mill at a reserve price of ₹20.27 crore. After modernizing the equipment, the crushing capacity of the Bhogpur mill was enhanced to 3000 TCD and a 15 MW co-generation power plant was also installed along with other modern machinery. The total cost of this project was ₹108.88 crore.
The mill successfully conducted trials in 2020–21, and during the 2021–22 season, it achieved notable results by exporting electricity worth ₹13.82 crore to PSPCL. Previously, local farmers were compelled to transport their sugarcane crops to distant private mills. With the commissioning of the new plant, the mill is now capable of handling substantial quantities of sugarcane from nearby areas.
The improved performance of both the sugar mill and co-generation plant is expected to significantly strengthen the mill’s financial position, enabling it to make timely sugarcane payments from its own resources, thereby moving towards self-sufficiency.
To operate and maintain the 15 MW co-generation plant (using bagasse, paddy straw, and other biofuels), the mill signed a contract agreement with M/s Shree Ganesh Edibles Ltd., Khanna (Punjab) on 27.08.2021. As per the agreement:
● The party will manage operations during both the crushing and off-seasons.
● Operations began in May 2022.
● The party is obligated to pay a minimum of ₹80 lakhs per annum or 7.35% of the revenue from electricity exported to PSPCL during the off-season.
As Per Clause 3.1.1, Article 3 of the agreement, the contract is valid for seventeen years starting from April 2022.
According to Clause 2.1.1(i) of the Power Purchase Agreement:
● Surplus power exported to PSPCL is priced at ₹6.29/KWh, with a 5% annual escalation.
● The current rate stands at ₹6.68/KWh.
This initiative is expected to help reduce stubble burning by farmers—an environmental hazard—by providing them an alternative use for paddy residue, thus enhancing their income and reducing pollution.
A Bio-CNG plant with a capacity of 100 TPD is being established on a Build, Operate, Transfer (BOT) basis. This plant will utilize press mud generated during the crushing season at the Bhogpur, Nawanshahr, and Nakodar Cooperative Sugar Mills.
Key highlights of the Agreement:
● 7 acres of mill land has been allocated for the project.
● The plant will use press mud from the three sugar mills.
● The operating party will pay a minimum of ₹75 lakhs annually or 10.10% of total sales, whichever is higher.
● Payments will be divided among the three mills based on their crushing capacity and supply ratio.
● The project must be completed within two years (by 26.08.2023).
● The agreement is valid for 22 years, including the installation period.
Once operational, the plant will promote sustainable energy production through efficient waste utilization, generate green energy, and create local employment opportunities.
A retail petrol pump has been installed on the mill’s land and has been operating successfully for the past two years, contributing additional revenue to the mill.
| Year | Award |
|---|---|
| 2014 | National Award Of Technical Efficiency from NFCSF New Delhi on 15-09-2014 |
| 2016 | National Award Of Highest Sugar Recovery from NFCSF New Delhi on 19-09-2016 |
