Ethanol manufacturing units in Bihar are facing mounting operational challenges due to reduced allocation of ethanol supply, prompting industry stakeholders to urge the government to increase allocation to enable plants to run at full capacity.
A delegation of the Bihar Ethanol Association (BEA), comprising promoters of Dedicated Ethanol Manufacturing Units in the state, met Dilip Jaiswal, Minister for the Department of Industries, Government of Bihar, to discuss key issues affecting the ethanol sector.
The delegation included CA Kunal Kishore, Secretary General of the Bihar Ethanol Association, Founder of InvestAid India and Co-founder of Karekeba Ventures. The team was led by Dr Dilip Patel, Chairman of Patel Group of Industries, and Ajay Singh, Chairman of Bharat Plus Group of Companies. Other members of the delegation included Ramashankar Prasad, Director, Westwell Biorefineries; Dhirendra Kumar, Director, Eastern India Biofuels Pvt Ltd; Kaushal Kishor Sharma, Chairman, BK Builders Pvt Ltd; and Rakesh Ranjan, Director, Muzaffarpur Bio Fuels Pvt Ltd.
During the meeting, the delegation highlighted several pressing concerns faced by ethanol manufacturers in Bihar. Key among them were the effective implementation of the Offtake Agreement and the restoration of full ethanol allocation for ethanol plants operating in the state. The representatives emphasized that timely resolution of these issues is crucial for ensuring operational sustainability, maintaining investor confidence, and supporting the long-term growth of the ethanol industry in Bihar.
According to ethanol producers, lower-than-required ethanol offtake has pushed plants in the state to operate well below their installed capacity, raising concerns over financial viability and potential shutdowns.
The Industries Minister noted the concerns raised by the delegation and assured them that the issues would be taken up with the relevant authorities at the Central Government level. He further stated that appropriate follow-up action would be initiated to address the challenges faced by the industry.
Recently, Jaiswal has acknowledged the seriousness of the issue and expressed concern over the difficulties faced by ethanol producers in the state. “Ethanol plants are on the verge of shutdown. Due to low ethanol supply allocation, these units are facing significant challenges,” Jaiswal said while speaking to Aaj Tak. “If ethanol plants shut down, it will have a direct impact on employment.”
The minister added that the state government is exploring measures to increase ethanol consumption and ensure the sustainability of existing plants. “We are taking steps to address the issue. I will soon visit Delhi and discuss the challenges faced by ethanol producers with the concerned departments,” he said.
