Ugar Sugar Works has stopped operations of the Ugar plant following a closure notice from the Karnataka Pollution Control Board (KPCB), the company said today.

In a BSE filing, the small-cap firm said it has approached KPCB for “interim relief” and also simultaneously filed appeal before appellate authorities for “stay of the operation of the order”.

“We expect to receive the stay order in the next couple of days,” Ugar Sugar Works said.

Th company said the KPCB has issued a closure direction for its Ugar unit for non-compliance of the provision of the Water Act, 1974, and the Air Act, 1981, in 2015.

“Accordingly, as per the direction of deputy commissioner Belgaum, we have stopped all the operations of the Ugar unit on

August 4 after 7.30 pm,” the company added.

Ugar Works, a flagship organisation of the Shiroakar Group of companies, has two units — Ugar and Jewargi — in Karnataka with a capacity to crush 18,000 tonnes sugarcane per day. It manufactures white crystal sugar.

The stock was up 7.86 per cent at 29.50 on the BSE at 1400 hours today.