The Indian state of Karanataka’s energy minister Shobha Karandlaje has confirmed that sugar factories, which generate power from bagasse, have agreed to sell 250-300 MW to the state at GBP0.13 ($0.20) per kWh.

The minister said that normally the Karnataka Electricity Regulatory Commission fixes rates for the power to be purchased by the government, but this time negotiations had taken place with the factory owners.

Karandlaje said that the Karanataka government currently receives 150 MW, with the sugar factories selling around 300 MW to private power companies.

According to expert sources in the sugar production industry, the generation in sugar mills was seasonal, and not all mills were working to full capacity. The cane-crushing season has just begun in the southern parts of the state, and it was yet to start in the northern districts.

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