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Thursday, December 1, 2022
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Balrampur Chini Mills to expand ethanol capacity to 1050 KLPD; Stock sheds 2%

Balrampur Chini Mills Ltd has informed that the Board of Directors on August 09, 2021 has approved further capacity expansion of ethanol production from 840 KLPD to 1050 KLPD considering the huge untapped demand for ethanol due to the robust policies of Government of India on ethanol blending.

The existing capacity is 520 KLPD (capacity expansion upto 840 KLPD as approved on 4th November, 2020, is under progress and accordingly, the 5th distillery unit at Maizapur of 320 KLPD is expected to commence production by November 2022)

The proposed capacity addition is 210 KLPD (40 KLPD at Gularia and 170 KLPD at Balrampur).

The expansion project requires investment of Rs205crs (Approx.) (15cr for Gularia and 190crs for Balrampur). Out of which, Rs140crs will be borrowed from Banks – Project Loans (Nil for Gularia and Rs140crs for Balrampur) and Rs65crs from internal accruals.

Enthused by the Hon’ble Prime Minister’s program of achieving higher ethanol blending of 20% by the year 2025, the Company has decided to augment its distillery capacity at Gularia and Balrampur apart from the 5th distillery at Maizapur which was announced in November, 2020.

Post expansion total distillation capacity of the Company would be 1050 KLPD resulting in almost 35cr liters of distillation capacity on an annual basis. Further, there is assured off-take of Ethanol along with clear pricing mechanism.

Apart from the aforesaid expansion the Board has also approved additional capex for Modernization and upgradation of its sugar factories.

The above news was originally posted on www.indiainfoline.com

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