Punjab a preferred destination for ethanol distillation

CHANDIGARH : Punjab is proving to be a favoured destination in the country for setting up ethanol distillation plants.

As many as 25 business houses have approached the state’s excise and taxation department with expression of interest to set up the plants, and as per reports more are keen.

Ethanol, the purest form of ethyl alcohol with a concentration of 99.65%, is a key ingredient in alcoholic beverages like beer, wine and brandy, and is used in large quantities in ethanol blended petrol (EBP), which helps reduce pollution, vehicular fuel cost and increases mileage.

Currently, the country has 200 ethanol plants, with an annual production capacity of 684 crore litres. Among these, four, attached with distilleries, are in Punjab.

With establishment of more plants in the state, country’s capacity is expected to touch 775 crore litres, which can help save Rs 30,000 crore of foreign exchange.

“Each plant of 100 kilolitre per day (one lakh litres per day) capacity will require an investment of Rs 100 crore. Currently, 8.5% ethanol is blended with petrol in the country and this is expected to touch 20% by 2025, as mandated in the National Bio-fuel Policy of 2018,” said excise department joint commissioner Naresh Dubey. A litre of ethanol is sold to petrol companies at Rs 50 per litre.

Abundant supply of water and food grains is the primary cause for industry’s interest in setting up ethanol plants in Punjab.

Wheat, paddy, maize and sugarcane, which are easily available in the state, constitute as major raw materials for the industry.