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GACL, GAIL join hands to set up 500 KLD Bioethanol plant in Gujarat

The estimated project cost is to the tune of Rs1,000 crore and it is expected to generate annual revenue of approximately Rs1500 crore.

May 11, 2022 1:40 IST | India Infoline News Service
Gujarat Alkalies and Chemicals Limited (GACL) and GAIL (India) Limited (GAIL) have joined hands to set-up a Bioethanol plant of 500 KLD capacity.

A Term Sheet for setting up a Bioethanol plant in Gujarat was signed by Harshad R Patel, lAS, Managing Director of GACL and R K Singhal, ED (BD & E&P) of GAIL, in the presence of M V Iyer, Director(Business Development) of GAIL, at New Delhi, on May10, 2022.

This step is taken in response to the Hon'ble Prime Minister of India's call for 'Atmanirbhar Bharat'. The Hon'ble Prime Minister has launched a Roadmap for 20% Ethanol Blending in Petrol by 2025, with a view to reduce import of crude oil and save valuable foreign exchange

This plant will be using corn/broken rice as feedstock with eco-friendly technology with a likely production capacity of 500 KLD Bioethanol, which will be used for blending in petrol. As by-products from this plant, 135 KTPA Protein-rich Animal feed and 16.50 KTPA of Corn Oil while using corn as feedstock are also expected to be produced.

Dahod, Panchmahal, Aravalli, Mahisagar and Sabarkantha are major corn-producing districts in Gujarat and hence, the project is likely to come up in this part of Gujarat. Corn is also produced in nearby states of Gujarat viz. Maharashtra, Madhya Pradesh and Rajasthan. A Detailed Feasibility Study through a third party is in progress for the project.

The estimated project cost is to the tune of Rs1,000 crore and it is expected to generate annual revenue of approximately Rs1500 crore.

An estimated savings of USD 70 million per year in Foreign Exchange outgo is expected through this project. Beyond the savings, this project will also generate direct and indirect employment for around 700 persons. Long term supply contract for corn would encourage corn farming with sustainable, multi-fold income for farmers through increased productivity and assured market.

Steps will also be taken to improve the productivity of corn in the State with the help of the Maize Research Centre in Godhra and other institutes.

At around 1:45 PM, GAIL (India) was trading at Rs150.35 apiece up by Rs1.5 or 1.01% while Gujarat Alkalies & Chemicals was trading at Rs797 apiece down by Rs69.65 or 8.04% on the BSE.

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