The project sponsor is Balrampur Chini Mills Limited which is a public company traded on the major stock exchanges in India. Its major shareholders are the Saraogi family which hold about 47% of its shares.

The total project cost is estimated at $44 million of which IFC proposes to provide a Rupee loan equivalent of $15 million for its own account.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity

* These investment figures are indicative

The greenfield sugar mill is to be located in Haidergarh in the district of Barabanki in the state of Uttar Pradesh, India. It is a rural site with small holding farms in the area. It is located near the main roadway to facilitate the transportation of sugar cane to the mill and sugar and its by-products from the mill.

The proposed ethanol distillery will be located near the company’s Babhnan sugar mill which is also in a rural area. It will benefit from the existing infrastructure associated with the mill.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of physical inspections of the new mill and cogeneration facilities under construction at Haidergarh; the proposed site for the distillery at Babhnan; and a technical evaluation of Balrampur’s other operating mills at Balrampur and Tulsipur. The environmental assessment of the project included review of technical and environmental/social information submitted by the project sponsor along with project-specific environmental assessments prepared for the Uttar Pradesh Pollution Control Board (UPPCB). The UPPCB grants authority to construct and permission to operate permits for the facilities and this control ensures that adequately designed projects are constructed within the state. IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines upon successful implementation of the agreed mitigation measures.
Location of environmental documents In locally affected community
The location of the environmental documents will be made available at the following sites.

(i) Haidergarh Location:

- Post Office: P.O. Pokhra
Tehsil, Haidergargh, District Barabanki

- Bank: Bank of India,
Nandengarh, Account No CD 72

- Temple: Co Laxmi Narayan, Pokhra

- Site: Pokhra, Haidergarh, Barabanki, Uttar Pradesh, India, 227 301

- Website: www.chini.com

(ii) Babhnan Location:

Post Office: Dist Gonda, P.O. Babhn
Pin 271 313

Bank: State Bank of India
P.O. Babhnan, District Gonda, Pin 271 313

Temple: Swami Narayan Mandir
P.O. Chapia, District Gonda, Uttar Pradesh

Website: www.chini.com

This project is expected to have a high development impact by achieving the following results:

- Help a mid-sized company remain competitive and prepare it to take advantage of changes in the Indian sugar industry. The project will support an experienced and successful operator in its drive to become a leading actor in a very fluid Indian sugar sector. The project will also allow the company to take full advantage of newly opened opportunities in the power and the ethanol sectors.

- Create strong backward linkages with farmers. The project will support a large number of individual farmers who will gain access to a reliable client for their production. At the Haidergarh location it will help farmers grow sugar which is one of the most profitable crops and should facilitate an increase in farmer incomes. The company enjoys considerable goodwill among sugar cane farmers due to the technical assistance provided and the reliability of its payments.

IFC will provide a much needed long term funds to the company as well provide input into enhancing the company’s occupational health and safety program. IFC will also work with the company to increase its farmer extension program through the use of existing trust funds.