Haryana's first ethanol plant became operational on Tuesday in the Panipat Cooperative Sugar Mills Limited.
The 2.5 crore worth modern technology based plant, which has a capacity of over 45,000 litres, has been set up in cooperation with American company, Geo Cam, a spokesman of Cooperative Sugar Mills said.
The plant was inaugurated by chairperson of Panipat Cooperative Sugar Mills and Deputy Commissioner Panipat, Ajit Balaji, he added.
The spokesman said that the ethanol produced in the plant would be sold to Oil Marketing Companies, which would give an estimated profit of Rs 3 crore per year.
The mills would produce ethanol for about 300 days in a year. Production of one litre of ethanol would cost about Rs 36, he informed.
"The Union government has fixed the selling price of ethanol at about Rs 38 per litre," he said, adding that ethanol is a type of alcohol which is made of by-product of sugarcane and molasses and can be mixed with fuel like petrol.