Categories: News

Bihar gets India’s first Greenfield grain-based ethanol plant

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PATNA, Bihar: On Saturday, April 30, Chief Minister of Bihar Nitish Kumar inaugurated the state’s first Greenfield project of a grain-based ethanol plant in Purnea, at a total cost of Rs 105 crore.

The ethanol production unit is a project under the ethanol production and promotion policy 2021 of the Government of Bihar. Through this policy, the Bihar government has been looking to boost ethanol production using sugarcane, maize and rice, thus reducing the fuel expenditure of the state. Government of India has already given a green signal to ethanol blending of up to 20 per cent in petrol, which will be achieved in a phased but time-bound manner from April 2023 to April 2025.

The plant at Purnea is a grain-based ethanol plant equipped with the latest technology that does not produce any waste or liquid discharge. The unit will procure 145-150 tonnes of rice or maize directly from the local farmers and 130 tonnes of rice husk. Additionally, the plant will generate distillers dried grains with soluble that could be used as cattle feed or in the poultry industry.

Produced ethanol is to be purchased by the Oil Marketing Companies (OMC) such as Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum Ltd under the long term purchase agreement of 10-years. OMC have signed an agreement with 17 ethanol-producing units of the state to supply 1080 kilo litres per day. Considering the availability of raw materials, water, and the production units needed for ethanol production, Bihar can produce 172 crores litre annually.

Team Urban Update

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