NSL Sugars to raise Rs 288 crore debt

HYDERABAD: NSL Sugars Ltd, part of city- based Nuziveedu Seeds (NSL) group, which is in process of achieving financial closure for expansion plans for its Aland unit (Karnataka) is set to raise Rs 288 crore debt from various banks, a top NSL Group official said today.

NSL Sugars, which entered into an MOU with Karnataka government in March last year to revive the ailing Aland Cooperative Sugar Factory at Bhusnur village in Aland taluka on lease, rehabilitate, operate and transfer (LROT) basis, will be investing Rs 96 crore as equity, NSL chairman and managing director, M Prabhakar Rao said.

As per the MoU, NSL Sugars has been given the freedom to expand the present crushing capacity of 1,250 tons a day to 2,500 tons a day. NSL Sugars has also been asked to set up a 15-MW co-generation power plant and establish 30 kilo litre a day distillery and ethanol unit within five years from the date of signing of the lease agreement. The factory has been leased out to NSL Sugars for 30 years for Rs 75 crore.

"The milestone was achieved when Central Bank of India lead-arranger, syndicated the entire debt component of Rs 288.51 crore. The project is to be financed on a 3:1 debt-equity ratio, and is estimated to cost around 384.68 crore," Prabhakar Rao told PTI.

The cane crushing capacity will be increased from 1,250 tons to 5,000 tons, which is ultimately expandable to 7,000 tons. The funds will also be used for setting up of a green field co-generation plant of 28 MW and a distillery plant of 60 KLPD capacity, he said.

Besides Central Bank, Canara Bank, State Bank of Patiala, State Bank of Hyderabad, Corporation bank and Indian overseas Bank have also come forward for the debt participation, Rao said.