Shree Renuka Sugars to invest Rs 450 crore to ramp up ethanol production capacity

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The sugar companies in India are all set to enhance their ethanol production capacity with many of them have started announcing capital expenditure for the same. 

Shree Renuka Sugars will be investing Rs 450 crore to expand its ethanol capacity, said the company on Saturday.

The company in a regulatory filing informed that its board has approved the expansion plan of increasing capacity to 1,400-kilo litre per day.

The board in February had approved the ethanol expansion plan from 720-kilo litre per day to 970-kilo litre per day.

The filing further said that considering the huge untapped demand for ethanol due to the policies of Government of India on ethanol blending, the Board of Directors of the company approved further capacity expansion for ethanol production from 970-kilo litre per day to 1,400-kilo litre per day.

The company will be spending Rs 450 crore for the same and would complete expansion work by October 2022.

Recently, Dalmia Bharat Sugar and Industries had announced the company is planning to increase the ethanol manufacturing capacity from the existing eight crore litres to 15 crore litres per annum by January next year. The company will expand the capacity of its plants located in Jawaharpur, Nigohi and Kolhapur. One new distillery will be set up at Ramgarh as part of the expansion.

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. 

The government believes ethanol distillation capacities in the country would be more than doubled by 2025 and India would be able to achieve 20 per cent blending target.

 

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