International Journal of Advances in Science and Technology, Vol. 3, No.

5, 2011

Captive Power Generation by Sugar Industries in Maharashtra

Bhagwan Patil1 and V M Chavan2
1

Research scholar, Energy Management in Western Maharashtra, India cdcbbp@gmail.com

Bharati Vidyapeeth University, Institute of Management, Kolhapur, Maharashtra, 416003, India

dr_v_m_chavan@yahoo.co.in

Abstract
Economic growth of any country depends on the fundamental infrastructure and available manpower. Electricity is one of the important infrastructures for socio economic development of mankind, the per capita use of electrical energy of a country influence the standard of living index of the people of a great extent. It is difficult to conceive comfortable and purposeful lifestyle without electricity. Power generation & distribution to the consumers is one of the basic needs for development. A weak power infrastructure impedes the growth potential & thus pulls back the growth initiative. Maharashtra is facing severe power shortage and from 2007 it becomes very serious issue and people are making agitations, bands, and attack on workers of Mahavitran. In Maharashtra the established capacity of the Captive Power Plants is less as compare to other states of the country. Industrial sector is one of the largest consumers of electrical energy in India. This paper provides the information on Maharashtras electricity scenario. Author studied the bagasse cogeneration development plants at different sugar factories in Maharashtra. Bagasse is filtrate of sugar cane at sugar factory which is fibrous and contains high level of CO2 in it. I t requires more space to store and if sugar factory starts a Cogeneration plant for captive power it will be dual advantages of the surplus power to the state and extra revenue to the sugar factories which produces electricity through cogeneration. Biomass cogeneration projects using renewable fuels are environmentally friendly and carbonneutral, in contrast to coal-fired power generation which is a source of high levels of particulates such as sulfur, nitrous oxides and other greenhouse gases. As these projects are located in rural areas, they also help to both drastically reduce transmission and distribution losses. Every 1 MW of electricity fed from bagasse cogeneration project is equivalent to 1.67 MW fed by a coal-fired power plant. To encourage increased and efficient use of biomass and sugar cane waste (bagasse) at sugar mills, Hence number of industries is now increasingly relying on their own generation (captive and cogeneration) rather than on grid supply.

Key Words Electricity, shortage, Bagasse, Cogeneration, surplus revenue, 1. Introduction

The objectives of the paper are assorted. Firstly, the paper traces demand and supply of electricity in Maharashtra from last five years. Secondly, the paper tries to make the literature review, electricity law 2003, and development of cogenerations at different sugar factories in the state of Maharashtra. Thirdly, the paper tries to explain the various advantages of captive plants to both state government and power generating sugar factory. Indias per capita power consumption was 490 units (Kwh) in 2004-05 which was stood to about 644 units in 2007-08 at an annual average growth of 10.47%. The National Electricity Policy envisages Power for all by 2012 and the per capita availability of power to be increased to over 1000 units by that period, which indicates an average consumption growth of about 13.81% every year. It is easy to make such a rosy projection for the future, but very difficult to attain it, especially when the capacity addition targets of every five year plan falls short of expectations. The main sources of electricity generation are fuels like coal, oil, which are having limitations of its availability. In this back droop, there comes the need for increased private participation in the power sector & initiating policies by more and more private companies to be self reliant on power front.

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International Journal of Advances in Science and Technology, Vol. 3, No.5, 2011 Captive Power Projects are accounted the immense potential for power generation in the country. Authors feel that if systematic utilization of all available industrial waste of the country will provide self sustainability in electricity supply. This paper is structured in different sub titles like introduction, Industry Scenario, Captive Power Scenario in India and Maharashtra, importance of captive power for cooperative sugar factories and state of Maharashtra and Conclusion. It also an overview of Maharashtras demand & supply of power, it also gives the contribution of cooperative sugar factories to dilute the load shedding problem in the state in 2010 -11. The authors want to create attention toward the need and importance of captive plants to resolve the worst problem of electricity shortage. Electricity Scenario: If we analyzed the total shortage of last five years we can aware how the consumers are disturbed. Table no. 1: Annual Average Demand and Supply of Electricity at Regular Hours of a Day Years Electricity MW Regular hours demand (Avg) 7826 Regular hours Supply (Avg) 7918 8325 8667 9575

2007 9575

2008 10141

2009 10,300

2010 10593

2011 11225

Table No. 2: Annual Average Demand and Supply of Electricity at Peak Hours of a Day Years Electricity MW Peak hours demand (Avg) 12460 Peak hours Supply (Avg) Above both the tables confirms the electricity shortage in Maharashtra. If we make careful analysis of the above tables it is found that average minimum gap electricity demand and supply is approximately 1600 MW and average maximum shortage is 9554 MW (Regular supply and peak demand of year 2009) Which indicate that state is purchasing electricity through depositing more rupees to cope balancing the demand and supply. In the month of October 2011 the peak demand was 16500 MW, while the availability was 11000 MW Demand and supply at regular hrs of a day 15000 Electricity (MW) 10000 5000 0 2007 2008 2007 2007 2011 Year Regular demand Regular supply 12578 13504 14353 15634 2007 16792 2008 17266 2009 17,879 2010 18168 2011 19105

Figure No. 1: Average difference in demand and supply at regular hours of a day

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Peak Demand and Regular supply of electricity 20000 Electricity(MW) 15000 10000 5000 0 2007 2008 2009 Year 2010 2011 R Supply P Demand

Figure No. 2: Average difference in Peak hours demand and Regular hours supply/ day The above figures 1 &2 gives the idea of average difference in demand of electricity by consumers and supply provided by the Mahavitara. Practically it is very difficult to generate the electricity required at peak hours in Maharashtra state in forthcoming recent years. There are different projects are on the way of completion and commencing but to start new projects and reach at zero load shedding it will require huge investment in all three sections generation, transmission, and distribution. It is not possible to invest this massive amount in short period of time ad hence it will be very wise decision to utilize the industries to produce captive power for their own use and to help to the state. In our state we have very wide and well developed cooperative sector and their sugar mills paper mills and milk factories. If state government motivate them to set up a captive power project it will be very worth and wonderful to solve this sever problem of load shedding due to shortage of electricity. Before we execute the study of the performance of state sugar factories in power generations, we see the rules and regulations of captive power in the electricity act 2003.

Literature Review
Before Electricity act 2003 industries were facing more restrictions of old rules and regulations. The new Electricity Act, 2003 has give a big boost to captive power generation in the country and industry experts believe that investments in this sector will increase substantially in the coming years. Under the new Act, any industry can generate power for its own consumption without any problem and even sell excess power to others. The Act provides for non-discriminatory open access to the Central transmission utility's transmission system by any licensee or generating company on payment of transmission charges. This applies to one unit and also to several units that come together as a group or form an association. Companies can now freely establish captive generation plants under the Act. At present, captive plants account for 35 per cent of the total power consumed by the industry with the installed capacity of these plants exceeding 20,000 mw. As The Electricity Act, 2003 has facilitated the growth of captive power plants in the country as it removes the major hurdles of permission and license, thus saving both time and money for the industry. What have cheered the industries are the abolition of license-permit raj in the new Act and the removal of section 44A and enabling open access right will provide major momentum for the industry. Open access to the grid is available to all captive power generating plants and every person who has constructed and operated, and is maintaining such a plant shall have the right to open access for the purpose of carrying electricity to the destination of its use. The economic viability is a crucial element in setting up captive plants. "CPPs are the fastest way to add new capacity to the present grid.

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International Journal of Advances in Science and Technology, Vol. 3, No.5, 2011 Captive power plants are a necessity for the Indian electricity scenario. The Electricity Act 2003 has been a landmark in institutionalizing captive power. Captive power generation also finds mention in the National Electricity Policy and the Electricity Rules 2005. A draft captive policy is also in the pipeline. Some of the important provisions highlighting captive power are listed below.

Provisions for Captive Power Plants in Electricity Act 2003 Captive generating plant is defined under Section 2 (8). It is a power plant set up by any person to generate electricity primarily for his own use and includes a power plant set up by any cooperative society or association of persons for generating electricity primarily for use of members of such cooperative society or association. Section 9 (1) further stipulates that a person may construct, maintain or operate a captive generating plant and dedicate transmission lines. It also provides that supply of electricity from the captive generating plant through the grid shall be regulated in the same manner as the generating station of a generating company. Section 42 (2) states that surcharge (for meeting the requirements of cross-subsidy) on wheeling charge shall not be leviable in case open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use.

Provisions for Captive Power Plants in National Electricity Policy

In consonance with the Electricity Act 2003, the National Electricity Policy emphasizes that the liberal provision in the Act with respect to setting up of captive power plant has been made with a view to not only securing reliable, quality and cost effective power but also to facilitate creation of employment opportunities through speedy and efficient growth of industry. The provision relating to captive power plants to be set up by group of consumers is primarily aimed at enabling small and medium industries or other consumers that may not individually be in a position to set up plant of optimal size in a cost effective manner. It needs to be noted that efficient expansion of small and medium industries across the country would lead to creation of enormous employment opportunities. The Policy further states that a large number of captive and standby generating stations in India have surplus capacity that could be supplied to the grid continuously or during certain time periods. These plants offer a sizeable and potentially competitive capacity that could be harnessed for meeting demand for power. Under the Act, captive generators have access to licensees and would get access to consumers who are allowed open access. Grid inter-connections for captive generators shall be facilitated as per section 30 of the Act. This should be done on priority basis to enable captive generation to become available as distributed generation along the grid. Appropriate commercial arrangements would need to be instituted between licensees and the captive generators for harnessing of spare capacity energy from captive power plants. The appropriate Regulatory Commission shall exercise regulatory oversight on such commercial arrangements between captive generators and licensees and determine tariffs when a licensee is the offtaker of power from captive plant. Towards this end, non-conventional energy sources including cogenerations could also play a role. Indias sugar sector competes with Brazils as the largest in the world, and is the second largest agriculture-based industry in India, after textiles (Natu and Zade, 2002). Approximately 60% of Indias sugar sector is owned and run by farmers through cooperatives, a situation that is unique to the country, while private sugar mills in India are the second largest producer. As with other agricultural cooperatives in the developed and developing world, in the sugar cooperative system in India individual landowning farmers are also shareholders in the sugar factory. Revenue earned from sugar sales are redistributed to farmer-members in the form of a sugarcane price (Ranganathan, 2005) [1]. Bagasse is fuel that is fibrous in nature, which contains a non-fibrous material called pith inside, with moisture content of around 50%. Its calorific value is 2300 kcal/kg. For production of 0.21 million tones of cane sugar, about 2.5 million tones of sugarcane is needed. Bagasse is 30-35% of the sugarcane crushed [3].

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Captive power
The power generation entities into two broad categories: Generation Utilities and Generation NonUtilities or Captive Power Plants (CPPs). The central2 (federal) government, state government, or private investors own the generation utilities. On the other hand, industries principally commission the CPPs. Various state level and central level acts defines CPPs in a variety of ways. Captive Power Plant (CPP) means the power plant set up / proposed to be set up by an industry / institution / a person for its / his own use (Government of Andhra Pradesh, 1998) generating unit(s) with aggregate capacity not exceeding 166 MW, which produces power for captive consumption of its owners (Government of Rajasthan, 1999) the power plant set up/proposed to be set up by a person or a group of persons for his or their own use (Government of Madhya Pradesh, 2000) a power plant set up by any person to generate electricity primarily for own use and includes a power plant set up by any co-operative society or association of persons for generating electricity primarily for use of members of such cooperative society or association (Electricity Act, 2003)[4]. Captive Generating plant means a power plant set up by any industry or person to generate electricity mainly for their own use and a group of industries can set up a big generating station near a mine for their groups use and sell excess power. Captive Power refers to generation from a unit set up by industry for its exclusive consumption. Industrial sector is one of the largest consumers of electrical energy in India. However, a number of industries are now increasingly relying on their own generation (captive and cogeneration) rather than on grid supply, primarily for the following reasons: -availability of adequate grid supply [2] Vedanta limited is currently operating a 9 x 135 MW coal-based Captive Power Plant at Jharsuguda, which facilitates cost-effective power supply to its Greenfield aluminum smelter, maximizing operational efficiency and enhancing functional superior. Captive power plants don't necessarily have to be islands that are disconnected from 'the grid'. In fact, it is often the case that the demand of the industrial process exceeds the capacity of the captive plant, and power must be taken from the grid to make up the difference. Also, there must be some provision to 'bootstrap' the integrated process into operation - often this means relying on grid power to start-up the plant following an outage. And it is possible that there are times when the captive plant will produce more power than can be consumed in the industrial process, and rather than throttle back the excess is sold to the grid. It is expected that there would be increase in private generation companies and captive plants. Some private companies, like Tata Power and Reliance Energy have already announced plans of setting up large power plants to cater to large industrial consumers. Quantum of such plants, also called Merchant plants, is likely to grow in the coming decade. It is another related matter that the increased availability of gas, proposed gas pipelines and possibility of LNG and coal import on both coasts has widened the choice of fuel and technology for generation. The likely economics of generation favors imported coal for coastal regions, followed by mine-mouth coal and gas. In case of industrial co-generation the gas is invariably the best option. From above examples it is clear that no. of industries are producing their own electric energy to survive in this competitive world.

Sugar Factories and Captive power Plants (Cogeneration)

In India more than 670 sugar industries in operation. The sugar industrys contribution, to the Indian economy is presently enormous with its total turnover of over Rupees Fifty five thousand crores (Rupees Five hundred fifty billion) or 12 billion US Dollars per year. The Indian sugar industry is amongst the largest tax payers to the Central exchequer contributing Rupees Two thousand six hundred crores per annum (Rupees Twenty six billion) or 0.568 billion US Dollars per year. Additionally, the industry also contributes substantially to the State exchequer. Over fifty million sugarcane farmers and their dependents and a large mass of agricultural laborers are involved in sugarcane cultivation, harvesting and ancillary activity. It is worth mentioning that the industry employs over five lakh skilled

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International Journal of Advances in Science and Technology, Vol. 3, No.5, 2011 and unskilled workers mainly from the rural areas. Thus, over 7.5 per cent of the rural population of India is directly or indirectly dependent on the sugar industry. Today India is the second largest producer of sugar in the world after Brazil and the cooperative sector is responsible for about 48 per cent of the total production. The role of the cooperative sector of sugar factories in the socio-economic development of India can hardly be over-emphasized.

Why Cogeneration?
Sugar factories inherently require steam and power for making sugar from sugarcane. Almost all sugar factories are having low pressure boiler and captive power T.G. set. Sugarcane contains approximately 30% of bagasse, which is directly burnt into the boiler. Due to low efficiency boiler, high consumption of bagasse is required. Almost all bagasse is burnt into the boilers. Saving and storage is also a problem as bagasse is highly inflammable. The burning of bagasse without sufficient output is nothing but national waste. In the cogeneration plant, high pressure and efficient boiler and machinery are fitted so that bagasse can be burnt efficiently and saved during season only and giving output of extra power. With the advancement in the technology for generation and utilization of steam at high temperature and pressure, sugar industry can produce electricity and steam for their own requirements. It can also produce significant surplus electricity for sale to the grid using same quantity of bagasse. For example, if steam generation temperature/pressure is raised from 400oC/33 bar to 485oC/66 bar, more than 80 KWh of additional electricity can be produced for each ton of cane crushed. The sale of surplus power generated through optimum cogeneration would help a sugar mill to improve its viability, apart from adding to the power generation capacity of the country. This power can be sold in the market and earns additional revenue. Ministry of New and Renewable Energy (MNRE) Govt. of India, New Delhi, has declared a Policy to give certain amount of subsidy for generation of renewable energy. At present, subsidy is available for cogeneration projects at the rate of Rs. 40 Lakh/MW for boilers having pressure from 40 to 60 kg/cm2, Rs. 50 Lakh/MW for boilers having pressure from 60 to 80 kg/cm2, and Rs. 60 Lakh/MW for 80 kg/cm2 and above. The maximum limit is up to Rs. 8 Crore per project. Co-generation is emerging as one of the important growth drivers for sugar industries across the country. Due to the excess production of sugar, prices will come down and sugar industries have to face losses. As happened in 2006 -07. Cogeneration is the use of a heat engine or power station to simultaneously generate both electricity and useful heat. Dwarikesh sugar industry is currently produces 86 MW electricity of which it is contributing 56MW to the state grid. Utter Pradesh tops in electricity generation by sugar plants. They produce about 450 MW and about 400 MW of capacity is under various stages of implantation. According to ISMA sources, sugar units in Tamilnadu produce 285 MW, Karnataka 271MW, Andra Pradesh 171 MW and Punjab 6 MW. Sugar units in Maharashtra, however, barely produce 1-2 MW more than their captive consumption. Dollex industry, is installing a co-generation facility for 15 MW at a sugar unit in Maharashtra. EID Parry (India) Ltd. one of the oldest sugar companies, plans to increase the share of revenues from cogeneration of power (combined generation of heat and power using a single fuel). The company is planning to invest Rs 300 crore towards the expanding its capacity in cogeneration of power over the next two years. i) Government of Maharashtra has taken a decision to support the cogeneration projects of the cooperative sugar factories by providing financial assistance. The Government of Maharashtra made a Resolution regarding the same on February 20, 2008. According to the Resolution and in line with the standard norms of debt and equity ratio of 60:40, the equity from sugar factories comes to 10%. Out of this 50% would be made available from Green Cess and 50% from sugar factory. Soft loans from Sugar Development Fund (SDF) is 30%, remaining 60% loan will be raised from financial institutions like National Co-operative Development Corporation (NCDC), Maharashtra State Co-operative Bank or other nationalized banks. ii) Initially, 55 co-operative sugar factories have been identified to take up the cogeneration projects. Around 1000 MW power is estimated to be produced during the next three years. iii) In 2008 -09 twenty one co-operative sugar factories were generating power and exporting around 118 MW power to the grid.

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Generation of electricity by cooperative sugar mills (on 31 March 2011)

In Maharashtra approximately 148 cooperative sugar mills are running and state government has permitted 55 factories for cogeneration plants but today only 32 factories are generating electricity. Government has provided government capital with 5 % interest rate Rs 96 crore to factories. In 2010 11 these 32 factories provided 200 MW electricity /hour to grid and supported to Mahavitaran. Actually factories were producing 454 MW electricity but factories had utilized 254 MW for their manufacturing of sugar can and other products. In cogeneration plants Solaur district is at tops (7 factories) followed by Kolhapur district (5factories). Sahakar Maharshi Shankarrao Mohite Patil cooperative sugar factory Aakaluj (Dist - Solapur) has generated 33 MW, while Deshbhakta Ratnappa Kumbhar, Ichalkaranji (Dist - Kolhapur). In general due to cogeneration plants sugar factories are becoming self sufficient and also providing helping hands to Mahavitaran to recover shortage some extent. Table No. 3: Sugar Factories Generated Electricity in 2010 - 11 Srl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Name of the cooperative sugar Factory Electricity Generated (MW) 11.5 27 6 12 30 11 12 28 20 33 8 10 7.5 7 16 12 8 15 10.5 18 21 9 18 20 6 12 18 17.5 16 5 4 5 454

Shree Datta S S K Ltd, Kolhapur Jawahar S S K Ltd Hupari, Taluka Hatkanangale. Sharad S S K Ltd Narande Taluka Hatkanangale. Chhattrapati Shahu S S K Ltd Kagal. Panchaganga S S K Ltd Ichalkaranji Shri Adinath S.S.K.Ltd., District - Solapur Shree Pandurang S S K Ltd Shree Vitthalrao Shinde S S K Ltd Shree Shankar S S K Ltd Sahakar Maharshi Shankarrao Mohite Patil SSK Ltd Loknete BAburao Patil Anagar Shree Vithal S S K Ltd Majalgaon S.S.K.Ltd., District - Beed Kisanveer S.S.K.Ltd., District - Satara Yashwant Mohite Patil Krushna, Satara Rajaram Bapu Patil S S K Ltd, Sangli Kranti S S K Ltd, Sangali Mohonrao Sinde S S K Ltd, Sangli Vighnahar S S k Ltd, Pune Shree Someshwar S S K Ltd, Pune Malegoan S S K Ltd, Pune Bhimashankar S.S.K.Ltd., District - Pune Samarth S.S.K.Ltd., District - Jalna Mula S S K LTd, A nagar Kukadi S S K Ltd, A nagar Saint Dyaneshwar S S K Ltd, A nagar Vikas S S K Ltd, Latur Terana Dhoki S S K Ltd, Osmanabad Dr. Babasaheb Ambedkar S SK Ltd, Osmanabad Devgiri S S K, Aurangabad Purna S S K Ltd, Hingoli Chopada S Sk Ltd, Jalgoan Total Source: [10]

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International Journal of Advances in Science and Technology, Vol. 3, No.5, 2011 Severe shortage of electricity creates major problems to farmers who cultivate sugarcanes in Maharashtra. Growing period of sugar cane is 12 months. It demands more water than other crops.and farmers have to take more care for its weight. Today Mahavitaran provides only 8 to 10 hours electricity to agriculture sector which causes problem to sugarcane growers. Life span of sugarcane plant is 12 month but sugar factories are not providing Tod (harvesting/cutting) up to 15 -18 months. Hence farmers have to take care of crop up to 18 months. It increases not only physical burden but also mental, financial burden on farming families. It is necessary not to depend on grid power but to start own sugar factories power generation to tackle this long rusted problem. Table No. 2: Electricity Supply to Different Sectors Industry Average Electricity Supply to Agriculture Sector Load Three phase supply hrs/ day Single Phase supply hrs/day shedding (Agriculture sector) House hold Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 13 hrs/day (Average) 12 hrs/day (Average) 15hrson 1/3/10, 12 hrs/days (Average) 11 to 12 hrs/day (Average) 11 hrs/days (Average) 11hrs/day for 11/6/2010 & 16 hrs/day up to 30 June (Average) 12 hrs /day (Average) up to 21.07.10. 16 hrs / day (Average) to 31.07.10 12 hrs/day 17 hrs/day 16 hrs/day 18 hrs/day 18 hrs/day 19 hrs/day (Average) 18 hrs/day (Average) 18 hrs/day (Average) 18 hrs/day (Average) 18 hrs/day (Average) 18 hrs/day (Average) 18 hrs/day up to 21.07.10 20 hrs/day 20 hrs/day 20 hrs/day 20 hrs/day 20 hrs/day 20 hrs/day

Month

January 10 February 10 March 10 April 10 May 10 June 10 July 10 August 10 September 10 October 10 November 10 December 10 Source: [12]

From the above table it is clear that agriculture sector gets more threat than other. In the month of May only 11 hours supply provided in per 24 hours. These figures are on record but actually farmers are getting 8 hours at day time schedule and 10 hours if at night hours schedule, (mean - 9 hours supply was provided by Mahavitran to agriculture sector). Hence to reduce the tensions of load shedding farmer have to take their own decisions in general meeting of sugar cane factory (already few are started to cogeneration) to generate electricity for surplus. Cogeneration projects using renewable fuels are environmentally friendly and carbon-neutral, in contrast to coal-fired power generation which is a source of high levels of particulates such as sulfur, nitrous oxides and other greenhouse gases. As these projects are located in rural areas, they also help to both drastically reduce transmission and distribution losses. Every 1 MW of electricity fed from bagasse cogeneration project is equivalent to 1.67 MW fed by a coal-fired power plant. To encourage increased and efficient use of biomass and sugar cane waste (bagasse) at sugar mills [14]. If single factory produced 12 MW electricity/day 150 * 12 = 1800 MW Electricity may generate / day. Base Hours shortage = 1500 MW If 1800 -1500 = 300MW (surplus electricity) Peak Hours shortage = 4000MW 4000 1800 = 2200 MW (load shedding may minimized by 6 hr in rural area)

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Conclusion
In Maharashtra industrial growth having steady rate and in forthcoming years demand for electricity will be more. We all are aware of the current power shortage scenario and experienced worst circumstances of load shedding of 12 to 16 hours a day (rural and agriculture sector). In future not only new factories, business world, and agriculture sector will require more electricity but also living standard of the people in the state and new innovative home appliances will create more demand of electricity. State government is putting their all efforts to balance the situation. To keep the rate of rapid industrializations constant, it is necessary to plan for long term quantitative and qualitative electricity supply. In the state cooperative sugar factories are playing very crucial role in rural development. Sugar factories require more electricity and steam. Bagasse is one of the important side products of these factories, which can be used as alternative source to coal and electricity could be generated by sugar factories. There are many advantages like Plenty of bagasse hence no shortage of raw material (actually Storage of bagasse is big problem to factories) Transportation of bagasse from one place to other causes many problems, cogeneration plant on will solve the transportation problem and bagasse will be consumed on factory site to generate electricity. Sugar factories require steam and heat which can be produced by burning bagasse. Sugar factories having major necessary resources to start cogeneration plant at their site. Grid load will be decreased as all sugar factories produces their own electricity no demand to Mahavitaran. Load shedding problem can be solved by some extent through more electricity generation than their requirement which could be sold to grid. Sugar factories will get one source of revenue generation for long term and the support to pricing of sugar cane (depends on sugar price which are flexible in the market). Employment opportunities to rural youth s will be increases and unemployment problem may be solved some extent. Transport, distribution, and other losses may be reduced if generated electricity supplied near by industries. If all sugar mills of the state permitted and decided to start cogeneration plants, more captive electricity will be generated and 25 to 40 % of electricity shortage and load shedding problem can be solved for long term. But power project implementation is a prolonged process spread over several years hence state and central governments must provides financial and other supports to these sugar factories to set up their captive cogeneration plant, which would afford some extent certainty in revenue generation to firm and relaxation to Mahavitaran with state government in some extent and the Indian sugar industry will become leading the entire world sugar industry in the matter of cogeneration of electric power and feeding the national grid.

References:
[1]BARBARA HAYA, MALINI RANGANATHAN, SUJIT KIRPEKAR, Barriers to sugar mill cogeneration in India: Insights into the structure of post-2012 climate financing instruments, CLIMATE AND DEVELOPMENT 1 (2009) 6681 [2] Infrastructure Development Action Plan for Chhattisgarh Final Report, 2010 [3] Cogeneration in Sugar Industries, A Pre-Feasibility Study Report, Prepared by the PREGA National Technical Experts from Bangladesh Centre for Advanced Studies, 2005 [4] P.R. Shukla, Debashish Biswas, Tirthankar Nag, Amee Yajnik, Thomas Heller and David G. Victor, Captive Power Plants: Case Study of Gujarat, India, Program on Energy and Sustainable Development, 2004.

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International Journal of Advances in Science and Technology, Vol. 3, No.5, 2011 [4] Generation, Protection switch gear and economics of Electrical Power, S K Girdhar, J N Grg, G C Garg, published Satya Prakashan , New Delhi. [5] Hydro Electric And Pumed Storage Plants, M G Jog, published Wiley Eastern Ltd, Bombay [6] Dilip kumar jha, Cooperative Sugar Press News, August 16, 2007, Vol.38 No. 29. [7] Cooperative Sugar, Dr. P J Manohar Rao, September 2011, Vol. 43, No.- 1. [8] John Samuel Raja D, Cooperative Sugar Press News, August 09, 2007, Vol. 38. No. 28 [9] The Hindu Business Line: Industry and Economy/ Government Policy: Power supply and demand date October 11, 2011. [10] Aggro one, Sakal news paper dated Tuesday, 18/10/2011 [11] Biomass Power/Cogeneration Program http://www.mnre.gov.in/prog-biomasspower.htm assessed on 31/10/11 [12] Central Electricity Authority, New Delhi, [13] Genesis of Sugarcane and Sugar, The National Federation of Cooperative Sugar Factories Ltd (NFCSF) assesses on 31/10/2011 [14] Sandeep Tandon, the Alternative Bagasse Cogeneration Program, U.S. Agency for International Development, 2010

Authors Profile

Mr. Bhagwan B Patil (Research Scholer), currently pursing PhD degree from Bharati Vidyappeth University, Pune, his research area is electricity management in Western Maharashtra. Auther has completed Management education (MBA) in 1998, working in Tatyasaheb Kore Institute of Engineering and Technology, Warananagar, Kolhapur. Author is Member of ISTE and presented many papers in International journals and attended various conferences on energy Management.

Dr. Vasant M. Chavan received his Ph.D degree from Shivaji University, Kolhapur, India. The author is Director of Institute of Management studies, Kolhapur, Bharati Vidyapeeth University, Pune A life member of different Management societies; He has completed FDPM from Indian Institute of Management studies, Ahmadabad. Author is a member of expert committee of NAAC and visited number of colleges for accreditation. He is having overall teaching and administrative experience of 32 years including professional colleges. His major research Interests are in Financial, Economical aspects. He has guided number of PhD scholars and Post graduate students.

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