However IPL will have to face a major challenge of sourcing sugarcane in the mill’s command area as many farmers have shifted to other crops.
The company has signed a Memorandum of Understanding (MoU) with the Government of Odisha for modernization and expansion of Badamba Sugar Mill with an estimated investment to ₹360 crore, IPL said in a statement.
The MoU was signed by IPL’s Managing Director P S Gahlaut and Cooperation Secretary of Odisha Rajesh Prabhakar Patil last week when Union Cooperation Minister Amit Shah visited the state on March 6, the statement said.
Shah addressing the event had said that another closed private sugar mill at Nayagarh in Khordha district would also be revived by IPL.
Shah was also instrumental in IPL taking control of three sugar mills in Gujarat, all of them have since been revived.
As per the MoU, the Badamba Cooperative Sugar Mill is expected to commence operation within one year and will have a capacity of 3,500 TCD (tonnes of cane crushed per day).
It will also consist of 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 around 10,000 farmers of the Badamba block of Cuttack district by reviving sugarcane cultivation in the state, enhancing farmer income and generating employment in the region,” the company said.
IPL had earlier roped in National Federation of Cooperative Sugar Factories Limited and SBI Capital Markets for a detailed technical and financial feasibility study.
The Odisha government has also agreed to provide 112 acres of land on a long-term lease basis to IPL for the expansion of the mill and to set up associated infrastructure.
“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,” said Gahlaut.
Local farmers and residents were seeking the reopening of the Badamba Sugar Mill for last many years and it was also a local political issue when BJP had promised to reopen it.
Besides being a major player in fertiliser, IPL has already diversified into agro-industrial ventures in sugar and grain ethanol manufactiring. The company currently owns 11 sugar mills – 6 in Uttar Pradesh, 3 in Gujarat, and 2 in Odisha.
Published on March 11, 2026