Modi Naturals Ltd. has recently performed the groundbreaking ceremony (bhumi pujan) of its greenfield ethanol distillery at Raipur in Chhattisgarh.
The company is setting up a state-of-the-art distillery, which has a production capacity of 210 KLD, with a 6MW cogeneration power plant. To set-up this plant, Modi Naturals Ltd. incorporated a 100 percent subsidiary (wholly owned subsidiary) called ‘Modi Biotech Private Limited’ (MBPL).
MBPL has received in-principle approval for a 210 KLD distillery for the manufacture of ethanol from the Central Government, along with signing an MOU with the Chhattisgarh Government for the same. The company has already received environment clearance (EC) for the project from the Ministry of Environment, Forest and Climate change (MoEF&CC).
The investment over the next two years is expected to be approximately Rs250 crore, with the first phase of 110 KLD with an investment of Rs160 crore, to be completed in the third quarter of FY 2022-23.
This project is also in line with the Honourable Prime Minister of India Shri Narendra Modi’s vision & roadmap for the Ethanol Blended Petrol (EBP) program with a target of 20% blending by 2025.
Commenting on this announcement, Akshay Modi, Managing Director, Modi Naturals Ltd. said, “This significant development is a step forward to boost the Ethanol ecosystem of India. With this new ethanol plant, we will be able to counter serious challenges related with vehicle emissions, air-quality improvement, lower consumer fuel prices, use of damaged food grains, increasing farmers’ incomes, employment generation, and greater investment opportunities.”
MBPL and its Parent company have over four decades of experience and talent in managing a wide range of businesses and projects. For the building and commissioning of the ethanol project, the company has taken on board industry experts in the form of consultants, plant suppliers and in-house team.
In the afternoon trade, Modi Naturals was trading at Rs202.40 apiece down by Rs10.65 or 5% on Sensex.