Mumbai, August 22: The Madhya Pradesh government has taken a significant step towards reviving the long-closed Kalai Sugar Factory in Moraina district. The MSME and Industry Department has issued an Expression of Interest (EOI) for the acquisition, restoration, modernization, and operation of the factory.
According to the released information, proposals are invited from interested companies and organizations to operate the Kalai Sugar Mill based on its current capacity of 1,250 TCD (tons of cane per day). The proposed assets include the factory building, plant machinery, warehouses, workshops, and approximately 12.86 hectares of land.
The government has proposed a 30-year lease for the mill, which can be extended based on satisfactory performance. The department has arranged site visits for interested companies on August 31 and September 1, 2026, allowing them to assess the factory’s condition, machinery, and land. A pre-EOI meeting will be held in Bhopal on September 3 to address any questions or concerns from the companies.
The deadline for submitting EOIs is set for September 15, 2026, by 5 PM, with proposals to be opened on September 16, 2026.
It is noteworthy that the Kalai Sugar Factory has been closed for an extended period, causing significant distress to local sugarcane farmers. They have to travel to distant districts to sell their cane, leading to increased costs. The closure has also eliminated local employment opportunities.
There has been a long-standing movement demanding the reopening of the Kalai Sugar Factory. Local farmer organizations and political parties have consistently urged the government to restart operations. Recently, a hunger strike was held to emphasize this demand.
The initiation of the EOI process is seen as a major relief for farmers and local residents in the region.
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