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 engines.

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.