Encouraged by the Union Food Ministry’s interest subsidy scheme, Grainspan Nutrients has invested Rs 520 crore to establish two grain-based ethanol plants in Ahmedabad, which are now supplying green fuel for blending with petrol.
These plants, utilizing maize and rice as feedstocks, have a combined production capacity of 350 kilolitres per day.
Grainspan’s first ethanol plant, located in Bhamsara Village, Ahmedabad district, commenced operations in May 2023 with a daily capacity of 110 kilolitres, making it Gujarat’s inaugural grain-based ethanol facility.
Following its initial success, the company commissioned a second plant at the same site last month. This new unit, built at a cost of ₹360 crore, has an installed capacity of 240 kilolitres per day.
The company supplies ethanol to Oil Marketing Companies (OMCs) under the Ethanol Blending Programme (EBP).
“There are three grain-based ethanol plants in Gujarat, and we operate two of them. We were the pioneers in setting up such a facility in the state, thanks to the central government’s subsidy,” said Manoj Khandelwal, CEO of Grainspan Nutrients Pvt Ltd.
He said there is an immense growth potential in ethanol production in India, not only to meet domestic demand but exports also, reported PTI.
Grainspan, which has been producing food ingredients since 2014, entered the ethanol sector a few years ago to diversify its business by leveraging the interest subsidy scheme.
This strategic move has contributed to an increase in the company’s turnover, which reached ₹760 crore in the last financial year.
According to CFO Pankit Shah, the company has invested ₹520 crore in total for both plants, which are now fully operational.
“The first plant was established with assistance from the Central Government’s interest subsidy scheme. We secured a loan of ₹120 crore for this facility,” he said, noting that the second plant did not receive any interest subsidy.
In addition to these grain-based units, Gujarat also has 13 sugarcane-based distilleries.
