The company plans to make an investment of Rs151cr for the expansion. The total will comprise Rs113.10cr of bank loans and Rs37.90cr of internal accruals.
In its regulatory filing, the company said that this project announced is in line with the policy of the Government of India for an increase in the blending of ethanol in fuel.
The company added that the proposed distillery will utilize sugarcane juice/syrup during the crushing season and in the off-season production from B & C Heavy molasses for continuous manufacture of ethanol.
At present, the company's existing capacity is at 75 KLPD.
On Sensex, Ugar Sugar closed at the upper price band of Rs38.20 per piece up by 4.95%.