Bihar in high spirits, nod for ethanol plants

It's great news for investment and power-starved Bihar. Tamil Nadu-based Indian Gasohol Ltd has proposed to set up 10 mega ethanol plants across north and south Bihar, investing a whopping Rs 13,557 crore.

It8217;s great news for investment and power-starved Bihar. Tamil Nadu-based Indian Gasohol Ltd has proposed to set up 10 mega ethanol plants across north and south Bihar, investing a whopping Rs 13,557 crore. The projects were cleared by the state Cabinet today.

According to the proposal, the company will set up cane crushing units of 25,000 TCD tonne crushed per day capacity at 10 places. The company will not venture into production of sugar, but will use cane juice to produce ethanol in its distilleries and also generate power through its co-generation units. It proposes to generate 2000 MW of power, of which 70 per cent will be surplus and will be utilised by the state government for rural electrification. The state government has assured to purchase the surplus 1450 MW from the company.

Apart from providing electricity to the state, these mega units will generate plenty of employment. 8220;The units will generate 50,000 direct and two lakh indirect jobs,8221; said Cabinet Secretary Amir Subhanni. The units will be set up in Buxar, Rohtas, Aurangabad, Gaya, Araria, Katihar, Bhagalpur and Nalanda.

The state government feels these ethanol units will also give a major fillip to the agriculture-based economy of the state and result in 15 lakh acre being developed for sugarcane production. 8220;The projects will benefit farmers the most with the company proposing to pay Rs 1,250 per tonne. This would mean a clear earning of Rs 22,000 per acre for the farmers,8221; the government claimed. The project will also result in a sharp rise in the average sugarcane yield of the state from 30 to 40 tonne per acre.

Ethanol happens to be the in-thing for Bihar following the Centre8217;s decision to allow blending of ethanol with fuel.

Chief Minister Nitish Kumar said that since Bihar was an agricultural economy, his government8217;s stress was on attracting investments in this sector. The state government so far remains buoyed by investments in the sugar sector. The state has so far received 19 proposals for greenfield sugar projects from major players in the sector.

The projects, however, have been delayed by at least one year due to the sharp fall in domestic sugar prices and glut in the international market.