The power produced by co-generation is used in internal industry processes, and excess power is sold to State Utilities/ Distribution Companies. Long-term Power Purchase Agreements (PPAs) are signed with these buyers based on terms and conditions as decided by the State Electricity Regulatory Commissions (SERCs).

One of the objectives of the National Electricity Policy issued by the Government is to promote co-generation and generation from renewable sources of energy. The urgent need to promote generation of power from such sources of energy, and the significant potential for co-generation in the sugar industry is well observed. There has been appreciable growth in this segment and this trend can be expected to continue in future as well because of growing demand for power in the country.