KRIBELCO will install three bioethanol plants as part of its diversification plan

Fertilizer cooperative Krishak Bharati Cooperative (KRIBHCO) will invest around Rs 1,100 crore in setting up three ethanol plants at Hazira in Gujarat, Nellore in Andhra Pradesh and Jagtial in Telangana. The facilities, which are part of the companys diversification plan, will have a capacity of 250 kiloliters per day.

The factories, which will use corn and broken rice as raw materials, are expected to be operational by the end of next year. Currently, the mixture of ethanol with gasoline is 12% and the goal is to reach 20% by 2025.

KRIBHCO will raise funds for this project through internal accruals and accounts payable. To implement these projects, the company has created a wholly owned special purpose vehicle (SPV), KRIBHCO Green Energy. The SPV has received environmental clearance (EC) and in-principle approval from the Ministry of Food and Public Distribution for an interest subvention scheme for the three projects. The SPV has awarded lump sum turnkey (LSTK) contracts to Excel Engineers and Consultants.

For its activities, KRIBHCO has established two wholly owned subsidiaries, namely KRIBHCO Agri Business (KABL) and KRIBHCO Green Energy.