Bihar’s industrial development is set to gain fresh momentum with the construction of two new ethanol plants in the Motipur Industrial Area of Muzaffarpur district. The projects are progressing rapidly and are expected to significantly strengthen the state’s ethanol production capacity.
Once operational, the two new units are likely to create direct employment for around 1,000 people, while thousands more will benefit indirectly through allied activities such as transport, raw material supply, and services.
According to the Bihar Industrial Area Development Authority (BIADA), three ethanol plants are already operating in the Motipur industrial zone. Construction of ethanol units in the area began in 2021, with production starting in 2023. With the addition of the two new plants, Motipur will soon have a total of five ethanol production units.
Each ethanol plant involves an investment of about ₹175 crore and requires nearly 300 tonnes of maize every day. This has brought direct benefits to local farmers, as maize is the primary raw material. Each unit has a production capacity of approximately 1.10 lakh litres of ethanol per day.
Motipur is also emerging as a major employment hub. Every ethanol unit provides direct jobs to around 400–500 people. In addition, large-scale indirect employment is being generated for transporters, labourers, shopkeepers, and others linked to the supply chain and service sector.
Rajesh Ranjan, Director of Muzaffarpur Biofuel Company, said that one of his company’s ethanol units is already operational in Motipur, while the second is under construction. He added that all the units in the industrial area are maize-based and that ethanol production will see a major rise once all five units become operational this year. According to him, each unit also supports indirect employment for nearly 3,000 to 4,000 people.
He also noted that ethanol is being directly procured by petroleum companies, ensuring smooth marketing. While the government has provided several incentives to promote the sector, he said the procurement system needs to be further strengthened in line with rising production.
BIADA Deputy General Manager Neeraj Mishra said that one of the new units is in its final stage and production will begin soon. He added that interest among investors in Bihar’s ethanol sector continues to grow, pointing to strong future prospects for industrial development in the state.
