DSCL to build new ethanol plant & promote sugarcane cultivation

The Board of Directors of the Davangere Sugar Company Limited (DSCL) have revealed through a regulatory filing that the company is expanding as far as ethanol production is concerned through a new plant and developing sugarcane cultivation.

DSCL has announces the expansion of its distillery and operations, by adding another grain-based unit. The capacity of the new unit will be 45 KLPD and the project cost is said to be of Rs. 54.00 crores. DSCL said that the financial tie-up with banks is completed and about Rs. 2.00 crores is invested in civil works. Negotiations completed with machinery suppliers. It is marking a significant milestone for the company and the local agricultural community.

DSCL intends to expand the distillery that will allow the company to now operate independently for 330 days of the year, ensuring a steady and robust production cycle. This growth is made possible by the increased procurement of maize, rice, and other feed stocks directly from local farmers. “By sourcing these essential ingredients from nearby agricultural farmers, DSCL strengthens its commitment to supporting the local economy and promoting sustainable farming practices,” added the company.

Ganesh, Managing Director of DSCL, noted, “We are thrilled to deepen and further strengthen our collaboration with local farmers. Their quality crops are the cornerstone to produce ethanol, and this expansion allows us to create more jobs, boost local income, and maintain our high standards year-round.”

One of key initiatives of DSCL involves promoting and developing sugarcane crops up to 15,000 acres in existing cane cultivation areas and regions traditionally not associated with cane cultivation. By expanding into these non-cane growing areas and ensuring sufficient raw material for the company, DSCL not only secure a sustainable raw material supply for company but also usher in a wave of socio-economic benefits for local farmers. The objective is to provide farmers in these regions with assured and timely returns on their produce. DSCL said that it understand the challenges farmers face and strive to alleviate them through various means, including financial assistance and loans.

“By leveraging cutting-edge technology and scientific expertise, we seek to create a thriving ecosystem where sugarcane cultivation flourishes while respecting ecological balance. In essence, our vision for sugarcane cultivation goes beyond profitability; it’s about fostering inclusive growth, empowering communities, and pioneering sustainable agricultural practices. With DSCL leading the way, sugarcane cultivation in non-traditional areas will not only become a viable option but also a catalyst for rural development and economic transformation,” said DSCL.