ABSTRACT The sugar cane containing minimum 30% fiber was referred as bagasse and used the generation of power required for the operation of sugar mill. The bagasse is fired in the boiler for producing steam at high pressure, which is extracted through various single high capacity turbines and used in the process. The installation of high pressure boilers and high pressure turbo-generators has provision for the operation of co-generation plant during the off-season also that enhances the power generation from 9MW to 23MW. The annual monetary benefits achieved are Rs. 204.13 million and this was based on cost of power sold to the grid @ Rs 2.548 per unit, sugar season of 219 days and off season of 52 days. This required an investment of Rs 820.6 million. The investment had an attractive simple payback period of 48 months.
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