HPCL plans ethanol and energy plants
An investment of Rs 600 crore (€91.3 million) has been lined up by the company to re-start the two sugar mills it has acquired in Bihar.
Apart from sugar, the mills will produce ethanol and generate around 100MW of power using bagasse in activities in line with its focus on energy issues.
HPCL has begun the process of taking over the assets of the Sugauli and Lauriya mills with distilleries for Rs. 95 crore.
The two units which belonged to Bihar State Sugar are more than 75 years old and have been idle since 1996.
HPCL has prepared a detailed feasibility report to build two new sugar mills.
The new mills will each have a crushing capacity of 3,500 tonnes a day.
Associated with each of these two sugar mills would be a 30MW cogeneration power plant and a 60 kilolitre-per-day ethanol distillery unit.
S Roy Choudhary, director (marketing) at HPCL, says that ethanol produced from these units will be used for fuel mixing under the government's ethanol blended auto fuel programme while sugar produced at the units would be sold to the state trading agencies.