.P. Dhanuka in Calcutta on Wednesday. A Telegraph picture

Calcutta, May 3: Riga Sugar Co, a Dhanuka group firm, will raise Rs 40 crore through global depository receipts or foreign currency convertible bonds to fund its expansion programme.

The plan includes increasing the crushing capacity from 3,500 tonnes per day (tpd) to 5,000 tpd, setting up a 45,000 litres-per-day ethanol plant and a unit to produce 25,000 litres of ENA ? potable alcohol ? per day at its distillery plant in Sitamarhi in Bihar.

“We are aiming to become a 10,000-tpd sugar plant. In the first phase, we will increase our crushing capacity to 5,000 tpd. The capacity addition will be completed before the end of this calendar year so that we can crush more cane during the forthcoming season (September to March 2006-07),” said .P. Dhanuka, chairman and managing director, Riga Sugar Co.

The company has crushed 52 lakh tonnes of cane this year (2005-06) and expects to do 65 lakh tonnes in the coming season, he added.

Besides, Riga Sugar will set up a 45,000-lpd ethanol plant to capitalise on the government’s petrol-doping policy that envisages a 5-10 per cent ethanol-blended petrol and diesel for automotive fuel.

The ethanol blending, which is currently being tried out in eight states and four Union territories, is expected to become mandatory for the entire country from 2007 with Parliament likely to pass a bill on this during the monsoon session.

“We will also set up an ENA plant at our distillery unit, which will cater to India-made foreign liquor manufacturers in Bihar,” Dhanuka said.

“At present, the state purchases most of its ENA requirement from distilleries in Uttar Pradesh and this involves a huge transportation cost,” he added.

After the installation of additional crushers and the ethanol and ENA plants, Riga Sugar will set up a co-generation power plant that will sell power to the state.