Fertiliser cooperative Krishak Bharati Cooperative Ltd (KRIBHCO) is investing around Rs 1,100 crore to set up three ethanol manufacturing plants using maize and broken rice as feedstock. These three plants are being set up in Gujarat, Telangana and Andhra Pradesh with a capacity of 250 kilo litre per day.

“We are setting up three bio ethanol plants as part of our diversification plan,” KRIBHCO’s Chairman Chandra Pal Singh said.

Rajan Chowdhry, Managing Director, KRIBHCO, said these plants are expected to be operational by end of the next year.

“We are investing around Rs 1,100 crore on setting up these three plants. We will be using grains like maize and broken rice as feedstock,” Chowdhry told PTI.

The investment is being met through a combination of internal accruals and debt, he said. Chowdhry said the cooperative will supply ethanol to oil marketing companies (OMCs) for blending with petrol.

At present, the ethanol blending with petrol is at 12 per cent and the target is to reach 20 per cent by 2025.

KRIBHCO has formed a 100 per cent owned Special Purpose Vehicle (SPV) ‘KRIBHCO Green Energy Private Limited’ for setting up three bio ethanol projects at Hazira in Gujarat, Nellore in Andhra Pradesh and Jagtial in Telangana.

According to its latest annual report, the SPV has received environment clearance as well as in principle approval from Department of Food and Public Distribution for interest subvention scheme for all the three projects. The SPV has awarded the Lump Sum Turn Key (LSTK) contracts for all the three bio ethanol projects to Excel Engineers and Consultants.

KRIBHCO’s total income jumped 95 per cent to Rs 25,715.07 crore during last fiscal on better sales, and it declared a dividend of 20 per cent. Total income stood at Rs 13,194.50 crore in the previous year. Addressing its 43rd annual general meeting (AGM) here recently, KRIBHCO’s Chairman Singh said the cooperative earned a pre-tax profit of Rs 763.16 crore in 2022-23.