Rs 8,500 crore investment lined up for ethanol; two-thirds by sugar mills

Sugar mills in the top sugar producing states viz. Maharashtra and Uttar Pradesh are projected to account for 40% and 30% of the fresh ethanol capacity addition

Amid the growing clamour to insulate the Rs 1 trillion domestic sugar economy from market volatility by diversifying the sugarcane value chain, the country’s sugar mills have lined up fresh investment to the tune of Rs 6,000 crore to upgrade for producing ethanol from sugarcane. 

Apart from this, Indian Oil and SunLight Fuels are also foraying into ethanol production with over Rs 2,500 cr greenfield investment. These are announced investment figures and many more private sugar mills and cooperatives will also follow suit to address the issue of excess sugar production.

UP government is investing Rs 100 crore to