Tamil Nadu: Management of Amaravathi sugar mill sends proposal to govt seeking Rs 166 crore to restart operations
The Amaravathi Cooperative Sugar Mill in Tamil Nadu has been non-functional since July 2023 due to machinery issues. The mill management has requested ₹166 crore from the state government to resume operations, with ₹80 crore needed for machinery repairs. Minister MP Saminathan announced that the renovation will be done in phases. Meanwhile, spirit production has started at the mill’s distillery, utilizing 2,708 tonnes of molasses, with most spirit sales allocated for debt repayment.
The management of Amaravathi cooperative sugar mill, which has been non-functional since July 2023, has submitted a proposal to the state government requesting ₹166 crore to resume operations.
Speaking to the media in Madathukulam on Sunday, Tamil Development, Information and Publicity Minister MP Saminathan stated, “The Amaravathi Cooperative Sugar Mill in Madathukulam was established in 1961 and has been out of operation since July 2023 due to machinery issues. Currently, ₹166 crore is needed to repair the machinery and restart production. Of this, Rs 80 crore is required for renovation work. This has been brought to the attention of the state government. The work will be carried out in a phase-by-phase manner.”
Farmers in Tiruppur district have long urged the state government to restore the mill’s functionality.
Earlier, the Minister inaugurated spirit production at the distillery located within the sugar mill premises in Krishnapuram near Madathukulam. He noted, “Production of spirit commenced on Sunday. The Tamil Nadu Cooperative Sugar Federation Ltd has placed an order for 2,726 tonnes of molasses (the raw material) for spirit production from cooperative and public sector sugar mills. So far, we have procured 2,708 tonnes of this raw material, and the spirit production process has begun.”
“A loan of ₹30 lakh has been secured from the Tamil Nadu Cooperative Sugar Federation Ltd to purchase the furnace oil needed for production. When the spirit is sold through the Tamil Nadu Cooperative Sugar Federation Ltd, the cost of the oil will be deducted. Additionally, 90% of the spirit sales will be allocated to repay debts, with the remaining portion going to the Amaravathi Cooperative Sugar Mill,” he added.
Minister of Human Resources Management N Kayalvizhi Selvaraj, District Collector T Christuraj, and others were also present
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