Ugar Sugar Works will set up a 200 KLPD distillery at its Ugar Plant at Ugar Khurd and conduct a trial during the upcoming crushing season.
According to the media report, the company will invest Rs 151 crore to set up the unit. The total will comprise Rs113.10cr of bank loans and Rs37.90cr of internal accruals. At present, the company’s existing capacity is at 75 KLPD.
The project is in line with the policy of the Government of India for increasing the ethanol production required for blending with fuel, said the company in its filing to the exchange.
One after another new investment is coming into the ethanol sector. In the recent past, many companies had announced capital expenditure for ethanol production.
Recently government had advanced the ethanol blending target from 2030 to 2025. The roadmap for ethanol blending in India 2020-25 was released by Prime Minister Narendra Modi on June 5 this year on the occasion of World Environment Day.
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