Punjab-based Sukhbir Agro Energy Ltd is planning to set up two paddy processing and co-generation power plants in Ferozepur and Mansa districts of Punjab with an investment of Rs 250 crore.

The company has submitted its detailed project report to Punjab Agro Industries Corporation Ltd (PAIC), a nodal agency of the state government which helps in promotion and facilitation of agri-based industries.

The project in Ferozepur envisages setting up of 80 tonnes per hour (TPH) rice mill, 14.5 mw bio-mass based co-generation power plant and construction of godown for storage of rice with capacity of 50,000 tonne. The project at Mansa envisages setting up of 20 TPH rice mill and a 14.5 mw bio-mass based co-generation power plant.

The project is to be funded through internal accruals and term loans from banks.

At present, the company has a rice mill and solvent extraction plant in Ferozepur district. Besides, it has set up an integrated food processing and 15 mw biomass residue-based power plant in Uttar Pradesh with a capital outlay of Rs 125 crore. The unit comprises of a 50 TPH rice mill, 500 TPD solvent extraction plant, which commenced commercial production in December 2007 and a 15 mw biomass-based power plant, which was completed and synchronised in February 2009.

Universal Bio-Mass Energy Pvt Ltd., a group company, recently commissioned a 14.5 mw bio-mass power project in Muktsar district of Punjab. The project has been set up with capital outlay of Rs 78 crore. The biomass-based power project is also eligible for carbon credit benefits under the Clean Development Mechanism  available under Kyoto Protocol adopted in December 1997. The plant would be utilising the biomass available in the region ie cotton stalk, mustard stalk and other agriculture waste material.