Balrampur Chini Mills, one of India’s largest integrated sugar manufacturers, has increased the planned capacity of its upcoming polylactic acid (PLA) plant in Uttar Pradesh from 75,000 tons per annum (TPA) to 80,000 TPA.
The expansion raises the project’s total capital expenditure to ₹2,850 crore.
Balrampur Chini initially approved a ₹2,000 crore investment for the greenfield PLA plant in February last year, based on preliminary planning.
After detailed engineering analysis, the board decided to optimize the plant’s capacity while lowering conversion costs.
Revised Financial Plan
The updated project cost of ₹2,850 crore includes a net capital expenditure of ₹1,750 crore, factoring in an expected capital subsidy of ₹1,100 crore under the Uttar Pradesh Government’s scheme.
The company plans to finance this investment through ₹1,650 crore in debt and ₹1,200 crore from internal accruals.
Project Progress and Global Benchmarks
Vivek Saraogi, Chairman and Managing Director of BCML, confirmed that the PLA project is progressing as per schedule.
Avantika Saraogi, Executive Director of BCML, highlighted that the PLA biopolymer plant will set two global benchmarks.
As reported by thehindubusinessline.com, it will be the first facility to produce PLA from sugarcane at the same site. It will also be the first PLA plant powered entirely by renewable energy.
