New Delhi, Mar 10: Badamba Cooperative Sugar Mill in Odisha, which has remained shut for more than 15 years, is set to be revived, bringing renewed hope to thousands of farmers in the region. Indian Potash Limited (IPL) has signed a Memorandum of Understanding (MoU) with the Government of Odisha for modernization & expansion of Badamba Sugar Mill with an estimated investment to ₹360 crore.
The MoU was signed by Dr. P. S. Gahlaut, Managing Director, Indian Potash Limited, and Shri Rajesh Prabhakar Patil, IAS, Commissioner-cum-Secretary, Department of Cooperation, Government of Odisha in august presence of Union Home and Cooperation Minister Shri Amit Shah Ji, whose continued support for strengthening the cooperative sector has played an important role in enabling cooperative institutions like IPL to undertake the revival of sick sugar mills across the country, on March 6, 2026. The occasion was graced by the presence of Honourable Union Minister of Education, Govt. of India, Shri Dharmendra Pradhan Ji; Deputy Chief Minister Odisha, Smt. Pravati Parida; Deputy Chief Minister of Odisha,Shri Kanak Vardhan Singh Deo and Honourable MP Bhubaneswar Smt. Aparajita Sarangi.
As per the MoU, the Badamba Cooperative Sugar Mill is expected to commence operation within one year and will have a capacity of 3,500 TCD (tonnes cane per day). It will also consist of a 16 MW co-generation power plant, a 10 tonnes per day Bio-CNG plant, and a state-of-the-art cold storage facility.
The project is expected to directly benefit around 10,000 farmers of the Badamba Block of Cuttack district by reviving sugarcane cultivation in the state, enhancing farmer income and generating employment in the region.
Based on the successful turnaround of 3 sick sugar mills in Gujarat, IPL now under the guidance of the Union Cooperation Ministry took up the project for the revival of Badamba Cooperative Sugar Mill. It roped in National Federation of Cooperative Sugar Factories Limited and SBI Capital Markets Limited for a detailed technical and financial feasibility study.
As part of the MoU, the Government of Odisha will provide 112 acres of land on a long-term lease basis to IPL for the establishment of the mill and associated infrastructure.
The revival of the sugar mill is aimed at improving the income of farmers by promoting sugarcane cultivation, which is increasingly being recognised as an energy crop due to its potential for producing ethanol, power, and bio-fuels. The project is expected to stimulate rural economic activity, generate employment, and encourage farmers in the region to take up sugarcane cultivation once again.
In recent years, IPL has played an important role in the revival of three sick sugar mills in the state of Gujarat, successfully restoring their operations through modernisation and improved management practices. The revival of the Badamba Cooperative Sugar Mill will follow a similar approach, combining technological modernisation with cooperative participation to ensure long-term sustainability.
Speaking on the development, Dr. P. S. Gahlaut, Managing Director, Indian Potash Limited, said: “The revival of the Badamba Sugar Mill reflects IPL’s commitment to supporting farmers and strengthening agricultural value chains. By restoring this mill, we aim to create sustainable opportunities for farmers, encourage sugarcane cultivation, generate employment, and contribute to the economic development of the region. We look forward to working closely with the Government of Odisha and the local farming community to make this project a success.”
The initiative is expected to fulfil the long-standing aspirations of local farmers and residents who have been seeking the reopening of the Badamba Sugar Mill for many years. Once operational, the project will not only revive sugarcane cultivation in the region but also generate employment, strengthen rural livelihoods, and contribute to the cooperative movement in Odisha.
