NEW DELHI: Fertiliser cooperative Krishak Bharati Cooperative Ltd (KRIBHCO) is investing around Rs 1,100 crore to set up three ethanol manufacturing plants using maize and broken rice as feedstock.
These three plants are being set up in Gujarat, Telangana and Andhra Pradesh with a capacity of 250 kilo litre per day.
“We are setting up three bio ethanol plants as part of our diversification plan,” KRIBHCO’s Chairman Chandra Pal Singh said.
Rajan Chowdhry, Managing Director, KRIBHCO, said these plants are expected to be operational by end of the next year
“We are investing around Rs 1,100 crore on setting up these three plants. We will be using grains like maize and broken rice as feedstock,” Chowdhry told PTI.
The investment is being met through a combination of internal accruals and debt, he said.
Chowdhry said the cooperative will supply ethanol to oil marketing companies (OMCs) for blending with petrol.
At present, the ethanol blending with petrol is at 12 per cent and the target is to reach 20 per cent by 2025.
KRIBHCO has formed a 100 per cent owned Special Purpose Vehicle (SPV) ‘KRIBHCO Green Energy Private Limited’ for setting up three bio ethanol projects at Hazira in Gujarat, Nellore in Andhra Pradesh and Jagtial in Telangana.
According to its latest annual report, the SPV has received environment clearance as well as in principle approval from Department of Food and Public Distribution for interest subvention scheme for all the three projects.
The SPV has awarded the Lump Sum Turn Key (LSTK) contracts for all the three bio ethanol projects to Excel Engineers and Consultants.
On financial front, KRIBHCO’s total income jumped 95 per cent to Rs 25,715.07 crore during last fiscal on better sales, and it declared a dividend of 20 per cent.
Total income stood at Rs 13,194.50 crore in the previous year.
Addressing its 43rd annual general meeting (AGM) here recently, KRIBHCO’s Chairman Singh said the cooperative earned a pre-tax profit of Rs 763.16 crore in 2022-23. The
profit before tax stood at Rs 1,493.26 crore in the previous year.
The cooperative has declared a dividend of 20 per cent on equity capital for the year and the management has approved Rs 77.68 crore for dividend outgo.
Net worth of KRIBHCO increased to Rs 5,128.61 crore last fiscal year from Rs 4,643.10 crore in FY22.
“The total membership of KRIBHCO consists of 9,470 cooperative societies. The paid up share capital of the society was Rs 388.62 crore as on 31st March, 2023,” Singh had said.
KRIBHCO’s urea production during 2022-23 was 22.21 lakh tonnes and ammonia production was 13.24 lakh tonnes with 101.20 per cent and 106.16 per cent capacity
It sold 57.08 lakh tonnes of fertilizers (urea as well as complex fertilizers) during 2022-23.
To diversify its operations, KRIBHCO has incorporated two wholly-owned subsidiaries namely KRIBHCO Agri Business Ltd (KABL) and KRIBHCO Green Energy Pvt Ltd. In its very first year of operation, KABL has achieved a turnover of Rs 200 crore.