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Simbhaoli Sugars starts operations in UP ethanol plant

BS Reporter  |  Mumbai 

The integrated sugar manufacturer Simbhaoli Sugars (SSL) is all set to commence operations on its new extra neutral alcohol (ENA) and fuel ethanol plant this season at its existing location at Brijnathpur in Uttar Pradesh. The project entailed a total cost of Rs 40 crore.

The sugar crushing season (November - March) is likely to commence in Uttar Pradesh late this month.

The molasses based ethanol manufacturing plant with an installed capacity of 60 kilo liters per day (KLD) has been set up adjacent to SSL’s Brijnathpur sugar plant.

With the start of Brijnathpur distillery facility, SSL’s total ethanol or alcohol production capacity will now 210 KLD. “Simbhaoli has become one of the largest producers of ethanol in the country today. We envisage higher revenues from our ethanol/ alcohol business, as Simbhaoli is poised to benefit from the government’s ethanol blended petrol (EBP) programme and also because of its proximity to key markets of Delhi, UP and Haryana,” said Dr G S C Rao, Executive Director, SSL.

Further, this is in accordance with the green fuel initiative taken by the Central government for reducing dependence on imported and scarce petroleum products.

“Getting into ethanol production is part of our strategy to derisk our business model and getting into non sugar businesses such as fuel Ethanol, potable alcohol, ENA, power cogeneration. We are now having three integrated sugar complexes, one of the largest in the country,” Dr Rao added.

The company is currently supplying over 12 million liters of ethanol to oil majors, such as Indian Oil and BPCL in various states including state of Uttar Pradesh. The diversification towards ethanol is part of Rs 480 crore growth plan chalked out by SSL, which was started in 2004-05.

First Published: Fri, November 07 2008. 14:57 IST