The UP government has approved the two second-generation ethanol plants which will incur an investment of Rs 4 billion each. The state government will also offer the company with facilities including stamp duty waiver, capital subsidy as well as SGST rebate. Each of the sanctioned biofuel facility is expected to utilise about 200 tonnes of agro-waste per day for the production of 50,000 litres of second-generation ethanol. The plants will be set up under technical collaboration with the Institute of Nuclear Energy Research (INER), Taiwan.
The facilities will be utilising agro-waste including rice straw, wheat straw and bagasse as raw materials to produce second-generation ethanol. The benefits of the project include additional income for farmers, reduction in stubble burning, socio-economic upliftment of farmers, saving on foreign currency and lowering bills of crude. The two plants are also expected to reduce carbon footprint and increase employment generation.