Chennai: The Tamil Nadu Government has urged the Centre for Rs 1,000 crore assistance under the Sugar Development Fund for expanding and modernising the cooperative and public sector sugar mills. The assistance will be required to establish cogeneration and ethanol facilities at the 15 cooperative and public sector mills in Tamil Nadu. The Centre should take into account the revenue earned by the sugar mills from cogeneration and distilleries when fixing the statutory minimum price for sugarcane; increase the percentage of ethanol blending in petrol to 10 per cent from the prevailing five per cent; and permit sugar mills to divert the cane juice for the ethanol and spirit production.
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