Bhubaneswar: The Cooperation Department of Odisha has proposed the revival of the long-defunct Badamba Cooperative Sugar Industries Ltd (BCSIL), placing an incentive package before the State Cabinet for approval. The revival plan is to be executed by Indian Potash Limited under the provisions of the Industrial Policy Resolution 2022.

The Badamba sugar mill has remained shut since 2011, severely impacting sugarcane farmers and the rural economy in the region. Following the closure, many farmers shifted from sugarcane cultivation to paddy, leading to the collapse of the local sugar-based industrial ecosystem.

In an effort to address this, the Chief Minister had earlier urged Indian Potash Limited to explore the revival of the unit. Responding to the request, the company has proposed setting up a ₹352 crore integrated greenfield sugar complex at the site of the old mill.

The proposed project includes a 3,500 tonnes-per-day sulphur-less sugar plant, a 16 MW cogeneration unit, and a 10 tonnes-per-day compressed bio-gas (CBG) plant. The initiative aims to modernise sugar production while integrating renewable energy components.

To facilitate the project, the Cooperation Department has recommended a 4 per cent interest subvention on term loans for the company and an enhanced capital investment subsidy of 30 per cent, including an additional 10 per cent over existing provisions.

Alongside industrial revival, the state government plans to boost sugarcane cultivation in the region through targeted expansion drives, in coordination with the Agriculture Department.

The project is expected to generate more than 500 direct jobs and create substantial indirect employment opportunities. It is also likely to revive the rural economy in Badamba and nearby areas, encourage crop diversification, and improve farmers’ income.

The integrated facility, with its focus on cogeneration and bio-gas production, is expected to contribute to renewable energy generation and promote a circular bio-economy model.