Indian Potash and Odisha Govt Sign ₹360 Cr MoU to Revive Badamba Sugar Mill
Indian Potash Limited (IPL) and the Government of Odisha have entered into a Memorandum of Understanding (MoU) to revive the Badamba Cooperative Sugar Mill in Cuttack district. The project involves an estimated investment of ₹360 crore and aims to modernize a facility that has remained non-operational for over 15 years. The agreement was formalized in early March 2026 by IPL Managing Director Dr. P. S. Gahlaut and Odisha’s Cooperation Department Secretary Rajesh Prabhakar Patil, notably in the presence of Union Minister for Home and Cooperation, Amit Shah.
The technical scope of the project extends beyond simple sugar production, transforming the mill into a multi-purpose industrial hub. Once operational—which is targeted within a year—the mill is expected to have a crushing capacity of 3,500 tonnes of cane per day (TCD). The infrastructure plan includes a 16 MW co-generation power plant, a 10-tonne-per-day Bio-CNG plant, and a modern cold storage facility. To facilitate this expansion, the Odisha government has committed 112 acres of land on a long-term lease.
The economic impact of this revival is significant for the local agricultural landscape, particularly for the approximately 10,000 farmers in the Badamba block. By providing a reliable local processing unit, the project is expected to incentivize a return to sugarcane cultivation, which is increasingly being viewed as a strategic “energy crop” for the production of ethanol and biofuels. This shift aligns with broader national goals of diversifying farmer income and strengthening rural energy self-sufficiency.
IPL’s involvement follows its successful track record of rehabilitating three struggling sugar mills in Gujarat. To ensure the viability of the Badamba venture, the company utilized technical and financial feasibility studies from the National Federation of Cooperative Sugar Factories Limited and SBI Capital Markets. This structured approach suggests a focus on long-term sustainability, aiming to turn a long-dormant asset into a cornerstone of regional economic development and industrial modernization.
