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.

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.