OPPORTUNITY OF DIVERSIFICATION FOR SUGAR MILLS IN PAKISTAN

Sugar Mills have a natural advantage of fuel (bagasse) availability to venture into power generation business. Many of the sugar mills are already producing power for self consumption. Sugar mills in Pakistan are therefore encouraged and invited to get benefit of their expertise and venture into the private power business.

Government of Pakistan has announced a lucrative Co-Generation Policy for sugar mills which not only extends the benefits of Power Generation Policy 2002 but also foresees availability of 'process steam' for sugar production. The Co-Gen Policy is very simple in processes and lenient in procedures. Besides help adding the value to the by-produced bagasse as fuel the Co-Gen Policy allows coal utilization to fill-gap the fuel needs. The power regulator has also allowed opting of 9.2754 cents/kWh as the Upfront Tariff for the interested.