BS reported that Lakshmi Energy and Foods, one of the largest private paddy processors in Punjab with a capacity of processing 1 million metric tonne of paddy per annum that diversified into biomass based power generation last year, plans to consolidate its energy business further.

Another 15Mw was commissioned in February 2009. The biomass based power plants were envisaged keeping in view the availability of in-house rice husk available as a by-product of paddy processing facility in the same premises at Khamanon.

However, it has decided to add 53 MW capacity to its existing capacity of 30 MW at its plant located in Khamanon, 45 kilometers from Chandigarh on Chandigarh to Ludhiana highway. An additional land of 35 acre adjoining the existing facility would be purchased to expand the energy production. The company’s operations would be spread over an area of 125 acre after the final negotiations of the additional land. The plant is likely to be complete in 24 months.

Mr BS Uppal chairman of Lakshmi Energy said that “An investment of over INR 200 crore would be made into the power project funded through internal accruals and term loans. Lakshmi Energy and Foods commissioned its maiden power plant run on rice husk in August 2008 having a capacity of 15 MW.”

Mr Uppal said “The earlier plants were biomass based but the new plant would be based on multi fuel technology. He explained that the rice milling was effected this year due to the surplus stock with Food Corporation of India. So in order to meet the fuel requirement in case of deficit of rice husk, multi fuel technology for the upcoming 53 MW power plant was adopted.”

He said "The declaration of Pusa 1121 as a variety of Basmati rice by Government of India would give a major thrust to our business by manifold increase in exports."

(Sourced from Business Standard)