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GACL, GAIL to set up 500 KLD bioethanol plant in Gujarat

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Companies

Project cost estimated at ₹1,000 crore 

Chemicals major Gujarat Alkalies and Chemicals Limited (GACL) and GAIL India on Tuesday signed an agreement to set up a bioethanol plant with capacity of 500 kilolitres per day in Gujarat.

Estimated project cost is ₹1,000 crore and it is expected to generate annual revenue of approximately ₹1,500 crore.

A term sheet for setting up a bioethanol plant in Gujarat was signed by Harshad R Patel, Managing Director of GACL, and RK Singhal, ED (BD and E&P) of GAIL, in New Delhi on Tuesday.

Reducing dependence on crude oil

The move will help increase the availability of ethanol for blending in petrol and reduce the import of crude oil.

In a statement, GACL said the Prime Minister has launched a Roadmap for 20 per cent Ethanol Blending in Petrol by 2025 with a view to reduce import of crude oil and save on foreign exchange. The latest development comes as a response to the Prime Minister Narendra Modi’s call for ‘Atmanirbhar Bharat’.

The proposed Gujarat plant will use corn/broken rice as feedstock with eco-friendly technology with a likely production capacity of 500 KLD Bioethanol, which will be used for blending in petrol.

As by-products from this plant, 135 KTPA Protein-rich Animal feed and 16.50 KTPA of Corn Oil while using corn as feedstock are also expected to be produced, the statement added.

Corn-producing regions

In Gujarat, the districts of Dahod, Panchmahal, Aravalli, Mahisagar and Sabarkantha are major corn-producing regions, thereby making sourcing of input easier for the project. Corn is also produced in nearby states of Gujarat viz. Maharashtra, Madhya Pradesh and Rajasthan.

A detailed feasibility study through a third party is in progress for the project, it added.

Employment generation

The project will help to achieve estimated savings of $70 million per year in foreign exchange outgo.

Beyond the savings, this project will also generate direct and indirect employment for around 700 persons, the company said, adding that it will also encourage corn farming with sustainable, multi-fold income for farmers through increased productivity and assured market with long term supply contract.

Steps will also be taken to improve the productivity of corn in the State with the help of the Maize Research Centre in Godhra and other institute(s).

Published on May 10, 2022

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