State-run Bharat Petroleum Corp Ltd (BPCL) has been given green nod for setting up a second-generation ethanol plant in Odisha that would entail an investment of Rs 7.47 billion, according to a senior government official.
The ethanol bio-refinery with a capacity of 100 kilo litre per day (KLPD) will be set up at Baulsingha village in Bargarh disrict in an area of 58.44 acres.
The project is in line with the government's national bio-fuel policy, which mandates 5 per cent blending of ethanol with petrol.
"Last month, the Environment Assessment Committee (EAC) vetted the BPCL's proposal and gave recommendation that the environment clearance (EC) be given to the ethanol project. Accordingly, the environment ministry has issued the EC," the official said.
The clearance has been given with certain conditions. Total cost of the project is estimated to be Rs 7.47 billion, the official added.
In the proposal, the BPCL said the project is expected to provide jobs for 200 persons directly and around 1,000 persons indirectly during the operation phase.
The company said it will use Lignocelluloses biomass, which is seen as an attractive feedstock for renewable fuels, particularly ethanol.
It also said that setting up of a second generation ethanol plant is important considering the government's plan to increase ethanol blending with petrol to 20 per cent by 2020.
"With first generation biofuel plants, India can only feed up to 3 per cent of this demand. But an increase in the second generation ethanol production could feed further demand, if such biofuel plants are set up everywhere around the country," it added.