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Rs. 800-crore dam over Ravi cleared

Staff Correspondent

The project includes power houses that would generate 168 MW of electricity

CHANDIGARH: The Punjab Council of Ministers at its meeting on Friday chaired by Chief Minister Amarinder Singh granted approval for implementation of the prestigious Rs.800-crore Shahpur Kandi Dam Project through the departmental mode.

This was disclosed by the Chief Minister to reporters after the meeting. He said the Council had accepted the project design and the recommendations of the Detailed Project Report (DPR) besides approving the funding pattern and organisational set-up.

The project, which is downstream the Ranjit Sagar Dam on Ravi river, will include power houses that would generate 168 MW of electricity.

The Government has also decided to increase the State Advised Price (SAP) of sugarcane by Rs.10 per quintal, raising it from Rs.115 to Rs.125. The decision to this effect was taken at a high-level meeting to review the status of cooperative sugar mills in the State.

Capt. Singh directed the Agriculture and Cooperation Departments to evolve a viable policy package for the revival of cultivation of sugarcane and cooperative sugar mills in the State as a part of the diversification of agriculture programme.

The Chief Minister further underscored the need to produce ethanol as a by-product from the molasses, which shall be consumed due to the mandatory mixing of 5 per cent ethanol in petrol and likelihood of it being increased of 10 per cent across the country.

He cited that Brazil was mixing 27 percent ethanol without any technical modification and had 100 percent ethanol based automobiles. He envisioned to set up molasses based ethanol refinery in Punjab in collaboration with a Brazilian company.

A presentation was made on the profile of Cooperative Sugar Mills in Punjab and the Chief Minister was informed that the price realisation of the state run cooperative the `Sugarfed' had risen from Rs.1750 per quintal in April 2005 to Rs. 2050 this year. There was demand and possibility existed for exporting sugar to neighbouring countries like Pakistan, Bangladesh, Sri Lanka and even to Europe.

It was also revealed that Punjab recorded the highest per capita sugar consumption in the world, where the average consumption of 44 kg was twice the average in the USA.

At yet another meeting the Chief Minister took cognisance of the rising prices of the essential commodities and suggested measures to ensure smooth Public Distribution System (PDS). He directed the officials of the Food and Civil Supplies Department to closely monitor the fluctuations in the prices.

Showing deep concern at the rise in prices of essential commodities, which were not distributed through PDS, Capt. Singh said that he would take up the matter with the Union Government.

He reiterated that the requisite stock of food grains should reach the beneficiaries well in time and the entire system should be streamlined.

The State's Food and Supplies Minister, Avtar Henry, informed the Chief Minister that the rise in prices of essential commodities was in line with the International Price Index and was not specific in Punjab.

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