The long-defunct Badamba Cooperative Sugar Mill in Odisha is set for revival after more than 15 years, with Indian Potash Limited (IPL) signing a Memorandum of Understanding with the Government of Odisha for the modernization and expansion of the unit with an estimated investment of Rs 360 crore.
The MoU was signed in New Delhi by P. S. Gahlaut and Rajesh Prabhakar Patil in the presence of Amit Shah on March 6, 2026. The event was attended by several dignitaries including Dharmendra Pradhan, Odisha Deputy Chief Ministers Pravati Parida and Kanak Vardhan Singh Deo, and Bhubaneswar MP Aparajita Sarangi.
According to the agreement, the revived sugar mill will have a crushing capacity of 3,500 tonnes of cane per day and is expected to begin operations within a year. The project will also include a 16 MW co-generation power plant, a 10 tonnes-per-day Bio-CNG facility, and a modern cold storage unit, making it a multi-product agro-industrial complex.
The revival project is expected to directly benefit around 10,000 farmers in the Badamba block of Cuttack district by encouraging sugarcane cultivation and creating a reliable market for their produce. Apart from increasing farmers’ income, the project is also expected to generate significant employment opportunities and boost economic activity in the surrounding rural areas.
The initiative is being undertaken following IPL’s successful revival of three sick sugar mills in Gujarat. Encouraged by these results and under the guidance of the Union Ministry of Cooperation, IPL has now taken up the Badamba project to replicate a similar turnaround through modernization and improved management practices.
For the project’s technical and financial planning, IPL engaged National Federation of Cooperative Sugar Factories Limited and SBI Capital Markets Limited to conduct a detailed feasibility study. As part of the agreement, the Odisha government will provide around 112 acres of land on a long-term lease to IPL for establishing the sugar mill and related infrastructure.
The revival is expected to reintroduce large-scale sugarcane cultivation in the region. Sugarcane is increasingly being viewed not only as a cash crop but also as an energy crop due to its potential for producing ethanol, electricity and biofuels. With integrated facilities such as co-generation and Bio-CNG production, the Badamba project is expected to create a diversified agro-industrial ecosystem.
Speaking on the development, IPL Managing Director P. S. Gahlaut said the project reflects the company’s commitment to strengthening agricultural value chains and supporting farmers. He noted that restoring the Badamba mill would create sustainable opportunities for farmers, promote sugarcane cultivation, generate employment and contribute to regional economic development.
Indian Potash Limited is one of India’s leading cooperative companies engaged in the import, distribution and marketing of fertilizers and agri-inputs. Over the years, the company has diversified into agro-industrial ventures, particularly in the sugar sector. IPL currently operates 11 sugar mills across India, including six in Uttar Pradesh, three in Gujarat and two in Odisha.
The revival of the Badamba Cooperative Sugar Mill is expected to fulfil a long-standing demand of local farmers and residents who have been seeking its reopening for many years. Once operational, the project is expected to revive the local sugar economy, strengthen rural livelihoods and further expand the cooperative movement in Odisha.
