Shree Renuka Sugars to ramp up ethanol capacity by investing Rs 450 crore

India’s leading sugar company, Shree Renuka Sugars plans to infuse Rs 450 crore to expand its ethanol capacity. 

In a regulatory filing, the company informed that its board has approved expanding production capacity by 430-kilo litre per day to 1,400-kilolitre per day. And in February 2021, the board had approved a capacity expansion of ethanol from 720-kilo litre per day to 970-kilo litre per day.

“Considering the huge untapped demand for ethanol due to the policies of the Government of India on ethanol blending, the Board of Directors of the company approved further capacity expansion for ethanol production from 970-kilo litre per day to 1,400-kilolitre per day,” the filing said.

The investment required for this capacity expansion is Rs 450 crore, it said. The capacity addition would be completed by October 2022.

“The government of India has mandated 20 percent ethanol blending in fuel by 2025 against a current blending of 7.79 per cent. Considering this, the company sees huge untapped demand for ethanol for the ethanol blending programme of the Government of India which can be of benefit to the company in the future,” Mumbai based,  Renuka Sugars said in a statement.

As such ethanol derived from sugarcane and other damaged food grains such as agriculture waste, broken rice and wheat is comparatively less polluting and gives an alternate source of income to farmers too.

Moreover, oil companies had spent around Rs 21,000 crore in procuring ethanol last year and this number is set to only shoot in the coming future to the aforementioned policy alterations.

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