Sweet Potential: Exploring the Ethanol Capacity of Sugar Companies in India - Delhi

The ethanol capacity of sugar companies in India is expected to reach 2 billion liters by 2020. This would make India the world's largest producer of the biofuel. The increase in ethanol capacity is being driven by government policies that mandate the use of blend of ethanol and gasoline in transport sector. The government has set a target of 5% blending of ethanol in gasoline by 2030. Sugar companies in India are making huge investments to expand their ethanol production capacities. Maharashtra State Federation of Sugar Factories has announced plans to invest Rs 1,000 crore (US$ 140.6 million) to set up new sugar mills and expand the existing ones to produce more ethanol. Similarly, Shree Renuka Sugars is setting up an integrated cane development and sugar complex in Karnataka with an investment of Rs 1,600 crore (US$ 222.9 million). The company has also signed an agreement with the state government of Karnataka for setting up an additional five distilleries with a combined capacity of 500 million liters per annum (mllpa). With these planned expansions, the total ethanol production capacity of sugar companies in India is expected to reach 2 billion liters by 2020 which would make India the world's largest producer of the biofuel.

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