Rana Sugars in pact with Tata Power; shares zoom 13%

NEW DELHI: Sugar producer Rana Sugars, which also generates electricity from bagasse, a by-product obtained during manufacturing the sweetener, today said it has entered into an agreement with Tata Power for sale of up to 40 MW a day during off season.

The company "has entered into an agreement for sale of power through Tata Power Co of up to 40 MW per day during off season from its sugar mills," Rana Sugars said in a statement to the stock exchanges.

The supply of power through Tata Power will be at a higher rate than to its existing buyers, the Chandigarh-based company said.

"This will increase the turnover and profitability of the company considerably," it added.

Following the announcement, shares of Rana Sugars jumped 13.30 per cent and were quoting at Rs 12.35 in afternoon trade on the National Stock Exchange.

Rana Sugars is an integrated sugar manufacturing company with interests in power and alcohol also.

It has an installed capacity to produce 68 MW of power, which is used for in-house consumption with surplus being sold to the state electricity board.