Yogi government sanctions two biofuel projects worth Rs. 800 crore
What's the story
The Uttar Pradesh government in its cabinet meeting held on Thursday approved setting up of two biofuel plants worth Rs. 800 crore in the districts of Saharanpur and Bijnor. The second-generation ethanol plants would be set up by ShivOm Dayal Energies (P) Ltd. Each plant would incur an investment of Rs. 400 crore and would utilize about 200 tonnes of agro-waste per day.
Production
Each plant to produce 50,000L of second-generation ethanol per day
The state government will also offer the company with facilities including stamp duty waiver, capital subsidy as well as SGST rebate. Each of the sanctioned biofuel facility is expected to utilize about 200 tonnes of agro-waste per day for the production of 50,000 liters of second-generation ethanol. It will be set up under technical collaboration with the Institute of Nuclear Energy Research (INER), Taiwan.
Benefits
Benefits include additional income for farmers and employment generation
The facilities will be utilizing agro-waste including rice straw, wheat straw, and bagasse as raw materials to produce second-generation ethanol. The benefits of the project include additional income for farmers, reduction in stubble burning, socio-economic upliftment of farmers, saving on foreign currency and lowering bills of crude. The two plants are also expected to reduce carbon footprint and increase employment generation.
Mission
Will contribute towards PM's vision of ethanol blending: Company's director
"The sanctioning of the mega-plants also strengthens our core mission of becoming the largest cellulosic ethanol producer in India and offer support to rural development and agricultural sectors," said Bainu Anand Ahuja, Director, ShivOm Dayal Energies. She further said, "Going forward we will strive to contribute towards our honorable Prime Minister's vision of 10% ethanol blending in petrol by the year 2022."
Information
Ernst & Young to work as transaction advisors of company
The MoU in this regard was signed during the two-day UP investors Summit held on 21-22 February 2018. A high-level committee headed by the state chief secretary had recently approved the project. Ernst & Young has been appointed as the transaction advisors of the company.