The sugarcane production has sharply fallen in the state of Uttar Pradesh. The sugar industry is also facing the hit due to the diversion of the crop to Gur (jaggery) and khandsari units by farmers.
UP Power Corporation has reportedly signed Power Purchase Agreement (PPA) of 1,022 MW with the private sector sugar mills. The PPAs of 1,022 MW, 699 MW generations commenced generation, while 322 MW is under construction.
The sugar production against the record produce of 85.75 Lakh MT in 2006-07, is likely to decline to 57 Lakh MT in 2008-09, the report added. The source said that with the drop in the availability of the sugarcane, most of the private mills with installed capacity ranging from 5,000 TCD to 12,000 TCD were unable to utilise their installed capacity.
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