Locational Advantages :
The factory is located in an area where the irrigation potential is huge. The Patgaon Dam on Vedganga River is only 7 k.m. away from the factory site at Tambale. The weather is conducive and the soil is ideal for the growth of sugarcane with natural drainage. There are natural compulsions for growing sugarcane in the absence of any other competitive crop. The recovery also is one of the highest in the country i.e.12.5% and above. It is pertinent to note that some of the best run sugar factories in the country are also located in this region. Apart from the socio-economic considerations, locational advantages also played an important role in selection of Bhudargad Taluka as the site for the sugar factory.

1) The site is well connected by asphalt roads and is situated close to the Mumbai - Goa Coastal Highway, making transportation of raw materials and finished goods easier.
2) It is situated close to two railway stations, an airport and a sea port.
3) The site is situated on the border of Western Maharashtra and Karnataka, which is surrounded by good market centers like Kolhapur, Sangli, Satara, Pune. Belgaum and Mumbai.
4) The region will benefit immensely from various irrigation schemes which are under implementation, resulting in increased sugarcane potential.

Some of the other advantages unique to the location are:

1) Bhudargad Taluka is inundated by two perennial rivers, Vedganga and Dudhganga.
2) Assured water availability throughout the rainy season.
3) Huge irrigation potential that will be created in Budargad Taluka on completion of the various irrigation projects.

Thus, the setting up of a sugar factory in Bhudargad ensures that the farmers in the region would be benefited as they can sell their crop without the recovery getting affected due to longer transportation time, and therefore get better prices.

Sugarcane Potential In Kolhapur District :
Kolhapur District is the most prominent among the sugarcane growing regions in Maharashtra. It can boast of the highest yields and recovery in India.

The project has earned the support and encouragement of various authorities and agencies who have recognized the potential of the project and its promoters. It serves as a role model for similar ventures by other rural women in the country, also leading to economic elevation of their social status.

Overwhelming support from the Govt. of Maharashtra. :
This venture has received overwhelming support from the State Government which has provided special concessions to the project in order to encourage the promoters to set up the sugar factory :

1) The State Government has made an exception to the norms of government contribution to the share capital of cooperative sugar factories in Maharashtra, by consenting to subscribe to 90% of the share capital of IGBMVSSK.
2) The State Government has also consented to provide payment guarantee to the lenders, against default by IGBMVSSK on its term loan commitments.
3) The State Government has allowed an extended area of operation for IGBMVSSK, which includes :
a) Kolhapur District - all 12 Talukas .
b) 3 Talukas of the neighbouring Sindhudurg District .

Support from Overseas Organisations:
Encouragement has come not only from within India but also from entities outside India, who have pledged their support to this unique venture.

IGBMVSSK has sought technical help for development of sugarcane by adopting drip irrigation system developed by Netafim Irrigation India Pvt. Ltd., the pioneers of drip irrigation. The farmers will benefit from their modern methods of cane cultivation and water management.

Adoption of scientific methods like the above will bring a much larger area under cultivation and thereby directly contribute to the economic development of Kolhapur District, particularly Bhudarghad Taluka, which is a backward area.