Bihar’s famous sugar mills are all set to revive as Riga Sugar Company (RSCL), the sugar outfit of Kolkata based O P Dhanuka group, is planning to tap the overseas market with Rs 40 crore foreign currency convertible bonds (FCCBs) to finance its capacity expansion plan, said an official release by the company.

The new Bihar government has announced an incentive package for establishment and expansion of sugar units. "After Uttar Pradesh, Bihar will be the new growth zone for sugar industry," said O P Dhanuka, the chairman and managing director of Riga Sugar.The company has a 3,500 ton crushing per day (TCD) capacity sugar mill at Sitamarhi in Bihar and is planning to expand the capacity to 5,000 TCD in the next year in order to become one of the biggest sugar mills in the state.

In another boost to industrail investment in Bihar “Coimbatore-based sugar major Rajshree Sugars and Chemicals Ltd has chosen Bihar for its foray into the north to set up two integrated sugar complexes.

The single-window State Investment Promotion Board (SIPB) has already received Detailed Project Reports (DPR) from Rajshree in this regard. The company proposes to set up two integrated sugar complexes by investing a total of Rs 480 crore in two Bihar districts: Rs 242 crore for the East Champaran project and Rs 238 crore for the one in Madhubani.

Early next week, the company will file a DPR for another project in Muzaffarpur district. Apart from the three new mills, Rajshree has also applied for revival of three state-owned mills, now shut, in Madhubani, Darbhanga and Muzaffarpur.

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