Leveraging the Central Ministry of Food's interest subsidy scheme, Grainspan Nutrients has invested ₹520 crore to establish two grain-based ethanol plants in Ahmedabad.
Ethanol Plants: In another significant step towards self-reliance in the green fuel sector in India, Grainspan Nutrients Private Limited has established two grain-based ethanol plants in Ahmedabad district, Gujarat. With a total investment of ₹520 crore, these plants have a combined production capacity of 350 kiloliters per day. This will bolster the government's plan to blend ethanol into petrol and accelerate the country's progress towards energy independence.
Boosting the EBP Mission
These plants have been set up under the Central Government's Ethanol Blending Programme (EBP), which aims to progressively increase the ethanol content in petrol to reduce reliance on oil imports. Grainspan is supplying ethanol regularly to Oil Marketing Companies (OMCs) through these plants.
According to Manoj Khandelwal, CEO of Grainspan, there are currently three grain-based ethanol plants in Gujarat, two of which are operated by Grainspan. He stated that the company was motivated by the central government's interest subsidy scheme, making them the first company to establish grain-based ethanol plants in the state.
First Plant's Success Boosts Confidence
Grainspan's first plant commenced operations in May 2023 in Bhamasra village, Ahmedabad. This plant, with a capacity of 110 kiloliters per day, was the first grain-based ethanol plant in Gujarat. It was established through a ₹120 crore loan under the central government's interest subsidy scheme. Subsequently, the company commissioned a second plant at the same location in May 2024, at a cost of ₹360 crore, with a capacity of 240 kiloliters per day. This plant was entirely privately funded, without any government financial assistance.
Corn and Rice as Green Fuel Sources
These plants uniquely utilize corn and broken rice as raw materials. This strategy offers a dual benefit: it effectively utilizes agricultural byproducts while reducing dependence on imported crude oil. This technology also strengthens the rural agricultural economy.
Economic Benefits and Employment Opportunities
Pankaj Shah, the company's Chief Financial Officer, stated that both plants are fully operational. Grainspan will supply approximately 8 crore liters of ethanol in the 2024-25 fiscal year. This ethanol will be sold to petroleum companies at ₹72 per liter, resulting in an estimated revenue of ₹576 crore for the company. The plan is to increase the supply to 12 crore liters in the following year (2025-26), potentially generating over ₹800 crore in revenue.
This investment will not only benefit the company commercially but also create employment opportunities for locals. Jobs will be generated across various stages, from plant operation and maintenance to raw material supply and transportation.
Government Policy as Inspiration
The Indian government's policies aimed at energy self-reliance and the interest subsidy scheme have encouraged private investors like Grainspan to enter this sector. Manoj Khandelwal stated that if this level of policy support continues, India will not only meet its ethanol needs but also potentially export it in the future.
He believes that India has immense potential for ethanol production, and if state governments provide incentives similar to the central government, investment in this sector will increase nationwide.
Towards a Greener Environment with Green Energy
Blending ethanol into petrol significantly reduces carbon emissions, benefiting the environment. It also plays a crucial role in enhancing the country's energy security. The plants established by Grainspan in Gujarat will not only propel the state towards green energy but also serve as an inspiration for other states.
