Indian Potash Ltd to Establish Two Sugar Mills in Bihar
Indian Potash Ltd will operate two new sugar mills in Bihar as part of a state initiative to revive closed industries. The project aims to boost farmer income and create local employment.
Key takeaways
- Indian Potash Ltd will set up and operate two sugar mills in Sakri (Madhubani) and Raiyam (Darbhanga), Bihar.
- The project is part of the state government's 'Samriddh Udyog-Sashakt Bihar' initiative to revive closed industries.
- The mills will include distilleries, cogeneration power plants, and Compressed Biogas (CBG) units.
- The Bihar government also plans to strengthen vegetable collection and marketing infrastructure and implement crop insurance schemes.
Bihar is set to establish and operate two sugar mills in the state through Indian Potash Ltd (IPL). The mills will be located at Sakri in Madhubani and Raiyam in Darbhanga. This initiative is part of the Bihar government's "Samriddh Udyog-Sashakt Bihar" program, a component of the Saat Nischay-3 initiative.
The announcement was made by Bihar’s Cooperative Department Minister Ram Kripal Yadav, who stated that the state cabinet had approved the revival of closed sugar mills. An agreement has been finalized with IPL for the establishment and operation of these two facilities, with production expected to commence soon.
In addition to sugar production, the two mills will feature distilleries, cogeneration power plants, and Compressed Biogas (CBG) units. Minister Yadav emphasized the state government's commitment to revitalizing other closed sugar mills sequentially.
The Cooperative Department aims to strengthen the rural economy and generate employment. This aligns with the "Bihar State Cooperative Policy, 2026," designed to modernize the cooperative movement, making it innovation-driven and inclusive for various societal segments, including youth, women, farmers, and entrepreneurs, to foster self-reliance and collective prosperity.
The report also detailed other departmental initiatives, including plans for 350 panchayat-level vegetable collection centers and 50 block-level infrastructure facilities. Primary Vegetable Producer Cooperative Societies (PVCSs) have been established in all 534 blocks, with financial support planned for PVCSs and vegetable federations. Schemes totaling ₹106.39 crore have been approved for vegetable collection, transportation, and marketing infrastructure.
Furthermore, the Pradhan Mantri Fasal Bima Yojana has been approved for implementation in Bihar starting from the Rabi season of the 2026-27 financial year. This scheme will assure farmers compensation equivalent to their agricultural costs, with a small premium contribution from farmers and shared premium costs from the State and Central governments.
Sources reviewed
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