To produce steam and electricity from bagasse, all sugar mills in the country have cogeneration plants for captive use. Ministry of New and Renewable Energy (MNRE) provides fiscal and financial incentives for surplus electricity generated by utilising optimum cogeneration by the sugar mills, said the Union Minister of New and Renewable Energy Farooq Abdullah in the Lok Sabha recently.    

So far, 213 sugar mills have installed bagasse optimum cogeneration plants with a total installed capacity of about 2332 mw under the scheme on biomass power/ bagasse cogeneration to generate electricity and its sale.    

About 1,000 mw surplus capacity of electricity has been installed by 73 sugar mills during last three years under the said scheme It is estimated that four million units of electricity per megawatt of capacity of the cogeneration plant is generated per year.    

The sale price of electricity ranges from Rs 3.50 to Rs 5.50 per unit of electricity depending upon the tariff fixed by the State Electricity Regulatory Commission. The details of income earned through sale of electricity by the sugar mills are not maintained by the MNRE.