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BSSUK and NKJ Biofuel to set up India's first ethanol plant as PPP

The government of Chhattisgarh has recently signed a Memorandum of Understanding (MoU) for India's first ethanol plant to be set up under the public-private partnership (PPP) model. The MoU was signed on December 30, 2020, by Bhoramdeo Sahakari Sakhar Utpadak Karkhana Maryadit (BSSUK), a cooperative sugar mill in Chhattisgarh, and NKJ Biofuel, a subsidiary of Chhattisgarh Distillery Ltd for a period of 30 years.

Speaking on the occasion, Chief Minister Bhupesh Baghel said that setting up of ethanol plant will prove to be important in ensuring timely payment of sugarcane price to farmers and ensuring full utilization of sugar factory capacity.

The establishment of the ethanol plant will generate direct and indirect employment opportunities and will form the basis for economic prosperity in the region. The present government of Chhattisgarh has kept the issues related to farmers and their development work paramount. The State government was the first to waive the agricultural loans and in view of the interest of the sugarcane farmers, the ethanol plant is being set up by the PPP model as a permanent solution to the economic hardship of sugar factories, Chief Minister Baghel said.

He added that this is the first example in the country to set up an ethanol plant by PPP model, and Chhattisgarh will also have an important contribution in the production of biofuels in the country by setting up an ethanol plant in the state.

To be built in the state”s Kabirdham district, the 40 000 litre per day ethanol plant is estimated to require an investment of over Rs 100 crore (≈US$13.7 million). During the sugarcane crushing season, crush juice will be used as feedstock for ethanol production while during the offseason, molasses will be used.

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