Bid & Tender


CM Nitish Kumar Inaugurates First Greenfield Ethanol Plant in Bihar

In a major boost to industry-starved Bihar, chief minister Nitish Kumar has inaugurated a greenfield grain-based ethanol plant built at a cost of Rs 1.05 billion at Purnea. The project is a part of Bihar’s ambitious foray into ethanol production using sugarcane, maize and rice to meet the country’s fuel needs.


The ethanol plant has been built using the latest technology and will not discharge any waste, making it a zero-liquid discharge plant that is completely environment friendly. It was commissioned under the Government of India and the Bihar dispensation’s ethanol promotion policies announced in 2021.


The plant will buy 130 tons of rice husk and 145-150 tons of maize or rice directly from local farmers. It will generate direct employment to 52 people and create avenues of earning for hundreds of others in the area.


The ethanol will be exclusively sold to the Oil Marketing Companies namely Indian Oil, Bharat Petroleum and Hindustan Petroleum in the State of Bihar and neighbouring States of West Bengal and Jharkhand, for which a 10 year long term purchase agreement has been with the OMCs.


Bihar’s industry minister Shahnawaz Hussain said that the state plans to utilize its sizable maize production- three maize crops are harvested every year in the state- along with sugarcane and broken rice which is not fit for consumption. The ground water level in the state is good due to several waterbodies. Availability of labour - at a relatively cheap rate - also works to the advantage of the state.


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