Friday, May 13, 2022

GACL and GAIL sign term sheet for setting up of a 500 KLD Bioethanol plant in Gujarat

Gujarat Alkalies and Chemicals Limited (GACL) and GAIL (India) Limited (GAIL) have joined hands to set up a Bioethanol plant of 500 KLD capacity in Gujarat

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New Delhi: 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 the setting up of a Bioethanol plant in Gujarat has been signed by GACL’s Managing Director Harshad R Patel (IAS) and GAIL’s Executive Director (BD and E&P) RK Singhal in the presence of GAIL’s Director (Business Development) MV Iyer in New Delhi on May 10.

This step is taken in response to the Prime Minister of India’s call for ‘Atmanirbhar Bharat.’ The Prime Minister has launched a roadmap for 20 percent Ethanol blending in Petrol by 2025, with a view to reducing the import of crude oil and saving 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 Rs 1,000 crore and is expected to generate annual revenue of approximately Rs 1,500 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 contracts 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.

(With agency inputs)

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