GAIL (India) Limited and Gujarat Alkalies and Chemicals Limited (GACL) have signed a Memorandum of Understanding (MoU) for the development of a 500 KLPD Bioethanol Plant in Gujarat, as well as the exploration of other business opportunities of mutual interest.
In the presence of Bhupendrabhai Patel, Chief Minister of Gujarat, K. Kailashnathan, Chief Principal Secretary to the Chief Minister of Gujarat, Pankaj Joshi, Additional Chief Secretary to the Chief Minister of Gujarat, and Manoj Jain, CMD of GAIL, the MoU was signed by M. V. Iyer, Director – Business Development, GAIL, and Milind Torawane, Managing Director, GACL at Gandhinagar.
The estimated project cost is Rs. 1,000 crore, and it is expected to generate approximately Rs. 1,500 crore in annual revenue for GACL.
This plant will use corn/broken rice as feedstock and eco-friendly technology to produce 500 KLD Bioethanol for blending in gasoline. This plant is also expected to produce 135 KTPA protein-rich animal feed and 16.50 KTPA corn oil while using corn as feedstock.
This action is being taken in response to India’s Prime Minister’s call for Atma Nirbhar Bharat. The Prime Minister has announced a roadmap for 20 percent ethanol blends in gasoline by 2025, with the goal of reducing crude oil imports and saving valuable foreign exchange.
Dahod, Panchmahal, Aravalli, and Mahisagar are major corn-producing districts in Gujarat, so the project is likely to be located in one of these areas. A Detailed Feasibility Study is being conducted for the project by a third party.
This project is expected to save the United States $70 million per year in foreign exchange outlays. Aside from the cost savings, this project will provide direct and indirect employment for approximately 700 people.
Long-term corn supply contracts would encourage corn farming by providing farmers with a sustainable, multi-fold income through increased productivity and guaranteed markets. With the assistance of the Maize Research Center in Godhra, steps will also be taken to improve corn productivity in the state.