Bihar Emerges as Ethanol Mfg Hub with 9 Operational Projects

Bihar is poised to become a major player in the ethanol manufacturing sector, with nine projects already operational with a combined capacity of around 1,500 kilo liters per day (klpd). The state government is showcasing these projects at the upcoming global investor's summit, 'Bihar Business Connect 2023', which is being held from December 13 to 14, 2023.

Bihar is the sixth-largest producer of sugarcane in India. This strong agricultural base, coupled with supportive government policies, is expected to propel the state to the forefront of ethanol production in the country. A total of 47 ethanol projects have been approved in Bihar under various ethanol interest subvention schemes between July 2018 and April 2022. Of these, seven projects are molasses-based, 32 are grain-based, and eight are dual feed.

The central government is also playing a key role in supporting Bihar's ethanol manufacturing ambitions. Under the scheme for extending financial assistance to sugar mills for expanding ethanol production capacity, the government provides soft loans through banks to mills for setting up new distilleries, expanding existing distilleries, and installing incineration boilers or other approved methods for zero liquid discharge (ZLD).

Over the past three years, the government has released around Rs 9.32 crore under the Ethanol Interest Subvention Scheme to four projects for enhancing distillation capacities. Ethanol manufacturing in Bihar has immense potential for growth, utilizing sugarcane juice, maize, and broken rice as feedstock.

The state government has formulated and notified the Ethanol Production Promotion Policy, 2021. This policy aims to make ethanol production in Bihar more attractive to potential investors, with the objective of fostering the development of ethanol manufacturing industries.

Bihar's ethanol manufacturing sector is poised for significant growth in the coming years, driven by a combination of favorable factors, including strong agricultural resources, supportive government policies, and central government assistance. The upcoming global investor's summit will provide an excellent platform for the state to showcase its potential and attract further investment in this promising sector.

News by Rahul Yelligetti