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Chhattisgarh signs contract to establish the state’s first ethanol plant under the PPP model


The Chhattisgarh government on Tuesday signed a contract to install the country’s first ethanol plant in the state under the public-private partnership (PPP) model.

According to the official statement, the contract was signed by Bhoramdev Cooperative Sugar Factory Kawardha and the subsidiary of Chhattisgarh Distillery Limited, NKJ Biofuel, for a period of 30 years.

On behalf of the state government, the Memorandum of Understanding was signed by Bhoramdev Cooperative Sugar Factory Managing Director, Bhupendra Thakur, while Aranya Kedia signed on behalf of Chhattisgarh Distillery.

Addressing the program, Chief Minister Bhupesh Baghel said that the installation of the ethanol plant will be important to ensure timely payment of the sugarcane price to farmers and ensure full utilization of the factory’s capacity of sugar.

The establishment of the ethanol plant will generate direct and indirect employment opportunities in the region and lay the foundations for the region’s economic prosperity, CM added.

“Chhattisgarh has kept issues related to farmers and their development work paramount. The state government was the first to renounce agricultural loans and in view of the sugarcane growers’ interest, the ethanol plant is being installed by the PPP model as a permanent solution to the economic difficulties of the sugar factories. This is the first example in the country that installs an ethanol plant by PPP model. Chhattisgarh will also make an important contribution to the production of biofuels in the country by installing an ethanol plant in the state, ”said Baghel.

Cooperatives Minister Tekam said that with the installation of the plant in the state, sugarcane-producing farmers would be able to pay the price of sugarcane on time and the demand for sugarcane will also increase. Farmers will get a direct benefit from it, he said.

“For the ethanol plant to be established by Chhattisgarh Distilleries Ltd with a capacity of 40 kilo liters per day (KLPD), a tender of Rs 5.27 crore per year was accepted. Under the PPP model, the factory will only make licensed land available. The investor will divest more than Rs 100 million in the ethanol plant facility. The plant is expected to be completed in a year and a half or two to start ethanol production, ”said a government official.

Hindustan Times