Bhubaneswar: The Odisha Cabinet chaired by Chief Minister Mohan Majhi has approved an incentive package to revive the long-defunct Badamba Cooperative Sugar Industries Ltd (BCSIL) in Cuttack district.

This followed a proposal by the Odisha Cooperation Department for reviving the mill through Indian Potash Limited (IPL), a public sector company with majority shareholding held by cooperatives such as IFFCO, under the provision of special/additional support mechanism in Industrial Policy Resolution, 2022.

An official release said that the Chief Minister had requested IPL to consider reviving the sugar mill, which has remained defunct since 2011, adversely affecting sugarcane farmers and the rural economy of Badamba and adjoining areas. “Due to closure of the industry, sugarcane farmers have shifted to conventional paddy cultivation, and the entire sugar and ancillary industry ecosystem has collapsed.”

Following which, the IPL has proposed to establish a Rs 352 crore integrated greenfield sugar complex, comprising a 3500 TCD sulphur-less sugar plant, 16 MW cogeneration plant, and 10 TPD Compressed Bio-Gas (CBG) plant over the vacant land of defunct Badamba Sugar Mill.

While the government will provide approximately 112 acres of land on a long-term lease basis, the operations are expected to commence within one year of the agreement.

Incentives Sought

The department has sought Cabinet approval for 4% interest subvention on term loans to IPL, an additional 10% Capital Investment Subsidy on top of the standard 20% under IPR-2022, bringing the total to 30% for eligible investments in plant and machinery. These align with incentives available for priority/thrust sectors under the state’s Industrial Policy Resolution 2022, which offers capital subsidies, electricity duty exemptions, and other benefits to promote industrial growth.

The department, in coordination with the Agriculture Department, is also planning special sugarcane expansion drives to strengthen cultivation in the catchment area and support crop diversification.

MoU and Timeline

A Memorandum of Understanding (MoU) was signed on March 6, 2026, by IPL Managing Director P S Gahlaut and Odisha Cooperation Department Commissioner-cum-Secretary Rajesh Prabhakar Patil, in the presence of Union Home and Cooperation Minister Amit Shah for modernisation and expansion of Badamba Sugar Mill with an estimated investment of Rs 360 crore. This followed in-principle approvals earlier for reviving two sugar mills – Bijayananda Cooperative Sugar Mills Ltd in Balangir and Badamba Cooperative Sugar Industries Ltd in Cuttack – are lying defunct for last over a decade.

Possible Impact

The revival of BCSIL is expected to restore sugarcane cultivation in the region, enhance and stabilise farmers’ income, and generate more than 500 direct employment opportunities along with substantial indirect jobs. It will stimulate ancillary economic activities, promote crop diversification from paddy to remunerative cash crops, and strengthen rural livelihoods. The integrated model with cogeneration and CBG production will also support renewable energy generation and advance the circular bio-economy, contributing to balanced regional development and rural industrialisation.

Key Highlights – Benefits to Public and State

• 500+ direct jobs and significant indirect employment for local youth
• Revival of rural economy in Badamba and adjoining areas
• Promotion of crop diversification and higher farm profitability
• Strengthening of cooperative sector and rural industrial base
• ₹352 crore private investment in the state

“The decision reinforces the state government’s commitment to farmer welfare, crop diversification and sustainable rural industrial growth,” it added.