This will boost ethanol production in the country which will help reduce India's oil import bill, thereby saving foreign exchange and boosting energy security.
The government has advanced its plan to bring 20% ethanol mixed fuel into the market, from the earlier timeline of 2030 to 2025.
India has moved from the 1% ethanol-mixed fuel in 2014 to the present 7-8% and is expected to reach a 10% mix next year.
When commissioned, this will become India’s largest capacity syrup-based ethanol plant.
Samir Somaiya, Chairman & Managing Director of Godavari Biorefineries Limited (GBL) said, “We decided to divert sugar cane syrup to distillery to manufacture Ethanol. Praj will design, engineer, supply, install and increase our capacity from 400 KLPD to 600 KLPD ethanol production using sugar syrup as raw material. We look forward to building on our mutually rewarding relationship with Praj with our new ventures."
This capacity expansion planned by GBL is in line with the government’s biofuel policy to increase the ethanol manufacturing quantity in India using various sugary feed stocks, the company said.
The expansion capacity at GBL will continue to be a zero-liquid discharge facility.
“Praj has over a decade’s experience in designing and building syrup to ethanol systems in overseas markets. Our technology delivers best in class yields enhancing the delivered value for our customer," Shishir Joshipura, CEO & MD of Praj said.
The expansion will maintain zero liquid discharge norms by deploying innovative technology--Shift, developed in Praj’s research and development facility - Praj Matrix. The ‘shift’ technology minimizes energy and water footprint, while maximizing value for customers.
Praj Industries was trading at ₹191.95, down 5.65%, on the BSE today.