Ethanol is produced from sugarcane molasses,
prepared by fermentation and distillation processes.
Ethanol is flammable and colourless liquid.
It is blended as an additive with fuel for motor
vehicles, and also known as Motor Fuel Grade Alcohol
or Power Alcohol. Ethanol is an environment friendly
fuel. Being an oxygenate it contains high percentage
of oxygen which helps combust fuel more completely
and reduces vehicular injurious emission. It can be
blended with petrol in varying quantities up to any
extent depending upon the technology of the engine.
Up to 15% blend no modifications are required in the
The Government of India has mandated compulsory lending of
Ethanol in Petrol by 5%, which will be increased to
10% very soon. The government has been taking
various favourable steps to promote Ethanol Blending
programme as part of Green Fuel Policy and reduce
import Bill on Petroleum and save foreign exchange.
In the process the government has adopted fixed
price policy which is very remunerative and has
given excise benefits.
The company is having Ethanol Plant of 45
KLPD, which commenced commercial operation from
2007 and has been supplying Ethanol to Oil Marketing
Companies (OMC) at different locations in Bihar for
admixing with Petrol.