Operation parameters of both traditional and modern sugar mills are analyzed and compared. Results show that the power-to-heat ratio of the modern and traditional mills lie in the ranges of 0.3-1 and 0.04-0.07, respectively. The three modifications made are: change to electric drives and higher capacity BPT (Case 1), HP boiler, CEST and electric drives (Case 2) and Case 2 plus bagasse drying (Case 3). The thermodynamic impact of these modifications on the traditional mills, shows more power is generated as the modification gets more advanced. The average increment in cogeneration efficiency values (as compared to base case) for Case 1, Case 2 and Case 3 are 4 %, 21 % and 31 %, respectively. The surplus power due to the modification made in Case 1 and Case 2 lies in the range 8-36 kWh/TC and 58-104 kWh/TC, respectively. For Case 3, the surplus power is the highest and the power generated lies in the range of 102-142 kWh/TC. The average LCOE value for Case 1 is 11 USD/MWh. For Cases 2 and 3 the average LCOE is 58 USD/kWh. The lowest average PBP values obtained are corresponding to the modification in Case 1. For the electricity prices of 0.04, 0.08 and 0.16 USD/kWh , the PBP for Case 1 are 7.5, 3 and 1 year. For Case 2 and Case 3, the lowest average PBP values obtained are corresponding to electricity price of 0.16 USD/kWh and these amount 6 and 5 years, respectively.