10 March 2026, New Delhi: The long-shuttered Badamba Cooperative Sugar Mill in Odisha is set to be revived after remaining closed for more than 15 years, offering renewed prospects for thousands of farmers in the region. Indian Potash Limited (IPL) has signed a Memorandum of Understanding (MoU) with the Government of Odisha to modernize and expand the Badamba Sugar Mill with an estimated investment of ₹360 crore.
The MoU was signed on March 6, 2026, by Dr. P. S. Gahlaut, Managing Director of Indian Potash Limited, and Shri Rajesh Prabhakar Patil, IAS, Commissioner-cum-Secretary, Department of Cooperation, Government of Odisha. The agreement was signed in the presence of Union Home and Cooperation Minister Shri Amit Shah, whose continued efforts to strengthen the cooperative sector have supported initiatives enabling cooperative institutions like IPL to undertake the revival of sick sugar mills across the country.
The occasion was also attended by Union Minister of Education Shri Dharmendra Pradhan, Odisha Deputy Chief Minister Smt. Pravati Parida, Odisha Deputy Chief Minister Shri Kanak Vardhan Singh Deo, and Member of Parliament from Bhubaneswar Smt. Aparajita Sarangi.
According to the MoU, the Badamba Cooperative Sugar Mill is expected to begin operations within one year. The modernized facility will have a crushing capacity of 3,500 tonnes of cane per day (TCD). In addition, the project will include a 16 MW co-generation power plant, a 10 tonnes per day Bio-CNG plant, and a state-of-the-art cold storage facility.
The project is expected to directly benefit approximately 10,000 farmers in the Badamba Block of Cuttack district by reviving sugarcane cultivation, enhancing farmer incomes, and generating employment opportunities in the region.
Following the successful turnaround of three sick sugar mills in Gujarat, IPL has taken up the Badamba revival project under the guidance of the Union Ministry of Cooperation. For this initiative, IPL engaged the National Federation of Cooperative Sugar Factories Limited and SBI Capital Markets Limited to conduct a detailed technical and financial feasibility study.
Under the terms of the MoU, the Government of Odisha will provide 112 acres of land on a long-term lease to IPL for the establishment of the sugar mill and associated infrastructure.
The revival project aims to boost farmers’ incomes by promoting sugarcane cultivation, which is increasingly recognized as an energy crop due to its potential for producing ethanol, power, and biofuels. The project is also expected to stimulate rural economic activity, create employment, and encourage farmers in the region to resume sugarcane cultivation.
In recent years, IPL has played a significant role in reviving three sick sugar mills in Gujarat, restoring their operations through modernization and improved management practices. The Badamba Cooperative Sugar Mill revival will follow a similar approach, combining technological modernization with cooperative participation to ensure long-term sustainability.
Speaking on the development, Dr. P. S. Gahlaut, Managing Director of Indian Potash Limited said, “The revival of the Badamba Sugar Mill reflects IPL’s commitment to supporting farmers and strengthening agricultural value chains. By restoring this mill, we aim to create sustainable opportunities for farmers, encourage sugarcane cultivation, generate employment, and contribute to the economic development of the region. We look forward to working closely with the Government of Odisha and the local farming community to make this project a success.”
The initiative is expected to fulfill the long-standing demand of local farmers and residents who have been seeking the reopening of the Badamba Sugar Mill for many years. Once operational, the project is expected to revive sugarcane cultivation in the region, generate employment, strengthen rural livelihoods, and contribute to the growth of the cooperative movement in Odisha.
Global Agriculture is an independent international media platform covering agri-business, policy, technology, and sustainability. For editorial collaborations, thought leadership, and strategic communications, write to pr@global-agriculture.com
