Nayara announces foray into ethanol production with investment of ₹600 cr

New Delhi: Rosneft-backed Nayara Energy Ltd has announced an investment of ₹600 crore to establish two ethanol plants in Andhra Pradesh and Madhya Pradesh, each with a production capacity of 200 kilolitres per day. 

The move, in line with the government's 2025 ethanol-blending target, will help the oil-refining to fuel-retailing major achieve vertical integration, the company said in a statement. Land has already been acquired for the proposed facilities in both states, it added.

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“Establishment of ethanol facilities will significantly enhance Nayara Energy's ethanol supply reliability, playing a crucial role in meeting the Indian government's 20% blending target by the end of fiscal year 2025-2026," Alessandro des Dorides, chief executive officer, Nayara Energy, said. 

Greener future

"This strategic move highlights our dedication to sustainability, regulatory compliance, and long-term growth in the dynamic energy sector. By expanding the presence in the ethanol segment, we aim to actively contribute to India's renewable energy goals and fostering a greener future," he added.

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The company aims to set up five ethanol production facilities, totalling 1,000 kilolitres per day. "As a major downstream player, delivering 8% of India's refining output, Nayara Energy fuels the country's dreams and aspirations, contributing significantly towards India's energy security," the company said.

Under its ethanol-blending programme, the government aims to have 20% ethanol-blended petrol available at all fuel pumps in India by 2025. Currently, all petrol pumps sell 10% ethanol blended petrol. The move seeks to reduce dependence on imported crude oil, and ensure lower pollution.