In the presence of Chief Minister Bhupesh Baghel, in his residence office on Tuesday, a memorandum of Understanding (MoU) was signed for the country’s first ethanol plant to be set up in Chhattisgarh under the PPP model. The contract was signed by Bhoramdev Cooperative Sugar Factory Kawardha and Chhattisgarh Distillery Limited’s subsidiary NKJ Biofuel for a period of 30 years.
On the behalf of the State Government, the MoU was signed by the Managing Director Bhoramdev Cooperative Sugar Factory, Bhupendra Thakur while Aranya Kedia signed on the behalf of Chhattisgarh Distillery . Cooperative Minister Dr. Premasai Singh Tekam, Forest and Environment Minister Mohammad Akbar, Industries Minister Kawasi Lakhma, Additional Chief Secretary Subrata Sahoo and Special Secretary Cooperative Himshikhar Gupta were present in the programme.
Addressing the program, Chief Minister Baghel said that setting up of ethanol plant will prove to be important in ensuring timely payment of sugarcane price to farmers and ensuring full utilization of sugar factory capacity. The establishment of ethanol plant will generate direct and indirect employment opportunities in the region and will form the basis for economic prosperity in the region.
Chief Minister Baghel said that the present government of Chhattisgarh has kept the issues related to farmers and their development work paramount. The state government was the first to waive the agricultural loans and in view of the interest of the sugarcane farmers, the ethanol plant is being set up by the PPP model as a permanent solution to the economic hardship of sugar factories.This is the first example in the country to set up an ethanol plant by PPP model. He said that Chhattisgarh will also have an important contribution in the production of biofuels in the country by setting up an ethanol plant in the state.
The programme was also addressed by Cooperative Minister Dr. Tekam. He said that with the setting up of ethanol plant in the state, the sugarcane producing farmers would be able to pay the price of sugarcane on time and the demand for sugarcane will increase as well. Farmers will derive direct benefit out of it.
A special presentation was also made by Special Secretary Gupta regarding establishment of ethanol plant unit. For the Ethanol plant to be set up by Chhattisgarh Distilleries Ltd with a capacity of 40 K.L.P.D. a tender of Rs 5.27 crore per annum has been accepted. Under the PPP model, only land will be made available by the factory on license. More than Rs 100 crore will be disinvested by the investor on setting up the ethanol plant. The plant is planned to be completed within one and a half to two years to start ethanol production.