Chhattisgarh signs contract to set up state’s 1st ethanol plant under PPP model

As per official release, the contract was signed by Bhoramdev Cooperative Sugar Factory Kawardha and Chhattisgarh Distillery Limited’s subsidiary NKJ Biofuel for a period of 30 years.

Updated on: Dec 30, 2020, 18:02:17 IST

Hindustan Times, Raipur | By Ritesh Mishra

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The Chhattisgarh government on Tuesday signed a contract to set up the first ethanol plant in the state under the Public-private partnership (PPP) model.

Addressing the program, chief minister Bhupesh Baghel said that setting up of the ethanol plant will prove to be important in ensuring timely payment of sugarcane price to farmers and ensuring full utilisation of sugar factory capacity. (Photo @ChhattisgarhCMO)

As per official release, the contract was signed by Bhoramdev Cooperative Sugar Factory Kawardha and Chhattisgarh Distillery Limited’s subsidiary NKJ Biofuel for a period of 30 years.

On behalf of the state government, the MoU was signed by the Managing Director Bhoramdev Cooperative Sugar Factory, Bhupendra Thakur, while Aranya Kedia signed on the behalf of Chhattisgarh Distillery.

Addressing the program, chief minister Bhupesh Baghel said that setting up of the ethanol plant will prove to be important in ensuring timely payment of sugarcane price to farmers and ensuring full utilisation of sugar factory capacity.

The establishment of the ethanol plant will generate direct and indirect employment opportunities in the region and will form the basis for economic prosperity in the region, the CM added.

“Chhattisgarh has kept the issues related to farmers and their development work paramount. The state government was the first to waive the agricultural loans and in view of the interest of the sugarcane farmers, the ethanol plant is being set up by the PPP model as a permanent solution to the economic hardship of sugar factories. This is the first example in the country to set up an ethanol plant by PPP model. Chhattisgarh will also have an important contribution in the production of biofuels in the country by setting up an ethanol plant in the state,” Baghel said.

Cooperative Minister Tekam said that with the setting up of the plant in the state, the sugarcane producing farmers would be able to pay the price of sugarcane on time and the demand for sugarcane will increase as well. Farmers will derive direct benefit out of it, he said.

“For the Ethanol plant to be set up by Chhattisgarh Distilleries Ltd with a capacity of 40 Kilo Liter Per Day (KLPD), a tender of ₹5.27 crore per annum has been accepted. Under the PPP model, only land will be made available by the factory on licence. More than ₹100 crore will be disinvested by the investor on setting up the ethanol plant. The plant is planned to be completed within one and a half to two years to start ethanol production,” a government official said.

ABOUT THE AUTHOR
Ritesh Mishra
Ritesh Mishra is the State Correspondent for Chhattisgarh with Hindustan Times. He reports on Maoism, internal security, politics, mining, governance, and major developments shaping the state. Based in Raipur, he has covered Chhattisgarh since 2016, reporting extensively from the Bastar region and other conflict-affected areas. With nearly two decades of experience in journalism, Ritesh has built a reputation for ground reporting from some of India's most challenging terrains. His coverage spans Left-Wing Extremism, counter-insurgency operations, elections, tribal affairs, environmental issues, infrastructure, mining, and socio-economic developments. He has reported on major security operations, policy initiatives, wildlife crime, and the changing dynamics of conflict and development in Central India. Before moving to Chhattisgarh, Ritesh spent eight years reporting from Madhya Pradesh, covering politics, administration, crime, development, and social issues. Throughout his career, he has reported on various forms of extremism in Central India, combining field reporting with in-depth analysis to produce accurate, balanced, and impactful journalism. Prior to joining Hindustan Times, Ritesh worked with The Pioneer and The Free Press Journal, where he covered a wide range of beats and honed his skills in political, investigative, and field reporting. His reporting is marked by exclusive stories, extensive fieldwork, and a commitment to factual, on-the-ground journalism that brings complex issues to a wider audience.Read More

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