Dwarikesh power plant at UP becomes active

Dwarikesh Sugar Industries Ltd has announced that on the February 03, 2008 at Company's Dwarikesh Puram (DP) plant in Afzalgarh, Bijnore District, the power generation turbine was synchronized with the grid of UPPCL. Power evacuation which is 20 megawatts initially will be gradually stepped up to achieve its rated capacity of 24 megawatts. Power generated will be green power, as it will be generated from bagasse (biomass). The fact that the project is already registered with UNFCCC for generation of (Carbon emission reduction) CER units is a matter of pride and bears adequate testimony of the environment friendly nature of the project.

The start of cogeneration plant at its Dwarikesh Dham plant in Fardipur, Bareilly district on February 09, 2008 is another defining moment in the history of the Company. This plant is an encore of the DP plat and will also use biomass for power generation. It is equipped to supply more than 24 megawatts of green power to the grid of UPPCL. Recognizing the environment friendly nature of the project, UNFCCC has on the February 01, 2008 accorded registration to this project for generating CER units.

Power purchase agreements (PPA) are already executed with UPPCL for supply of power from these units for the next 20 years. Registration of these projects with UNFCCC will help enable the Company to sell CER units and in the process earn handsome revenues.

The Company is now equipped to export 56 megawatts of green power besides meeting all its captive requirement. Commencement of these projects are giant steps in the direction of optimizing use of by products and in combating adverse cyclic conditions impacting the sugar industry. In the execution of above projects high pressure boilers & sophisticated turbines involving revolutionary technology and investment in excess of INR 225 crores were deployed. The commencement of these projects would usher in a new era in the history of the Company as new dimension will be added to the business model where in there will multiple streams of revenue, each contributing significantly to the top-line and the bottom-line.

The Company now has state of art facility to crush 21,500 metric tons of sugarcane every day, export 56 megawatts of power every hour and produce and sell 30 KL of ethanol / Industrial alcohol everyday.

There is paradigm shift in the business model of the Company. From a business entity which originally made only sugar it has now transformed in to an entity which also makes sugar.

Mr. Vijay S Banka, CFO, Dwarikesh Sugar Industries said "The commencement of the cogeneration plants and their registration with UNFCCC adds an exciting dimension to the growth story of our group. The past one year has been very difficult and it required concerted effort on the part of all concerned within the organization and support and help of all our business associates to survive and beat the adversity. However the worst is behind us and we look forward to sustained growth and exciting times in future."

Dwarikesh Sugar on SAP judgement

Dwarikesh Sugar Industries Ltd has announced the following Please Release in relation to clarification to Supreme Court Interim Judgement on SAP for 2006-07:

"This is with reference to the Supreme court (SC) Judgment passed on January 18, 2008 in SLP petition filed by Basti Sugar Mills Ltd, wherein SC has, by an interim order, set aside quashing of State Advised Price (SAP), earlier allowed by an interim order of Allahabad High Court dated December 19, 2007 in Basti Sugar Mills Ltd's in relation to season 2006-07.

We wish to put on record that State Advised Price (SAP) for payment of Sugar cane for 2006-07 was fixed at Rs 125 per quintal by the State Government & Statutory Minimum price (SMP) was fixed as Rs 80.25 per quintal linked to basic recovery of 9%.

The aforesaid interim order would cast liability on those Sugar factories, who have not paid their all dues as per SAP for season 2006-07.

We further wish to advise that Dwarikesh Sugar Industries Ltd (our Company) has already paid off all the cane dues as per SAP for season 2006-07 & would not be affected by the aforesaid SC order."