INDORE: Madhya Pradesh government is preparing to unveil an ethanol policy to attract ethanol manufacturers in the state. At least 18 investors have proposed to invest Rs 3000 crore in the state.

In the past six months, 18 potential investors have seen land parcels across different locations in the state to set up ethanol plants. Some of the destinations being preferred by investors for setting up manufacturing units are Jabalpur, Satna, Chhindwara, Vidisha, Balaghat, Nemawar and Dhamnod.
Industrial policy and investment promotion department principal secretary and Madhya Pradesh Industrial Development Corporation (MPIDC) chairman Sanjay Kumar Shukla said,

“We have received 18 applications from investors seriously looking for suitable destinations in state to set up ethanol plants. They will invest in around Rs 3,000 crore in the state. As Centre has set target of 20 per cent ethanol blending with petrol by 2025, many industries are now looking to set up facilities.”

Shukla said the state government will soon unveil an ethanol policy for which the draft is ready to lure investment from ethanol plants. The draft of the policy will be presented to the chief minister Shivraj Singh Chouhan on Thursday.

“The new ethanol policy will offer exemptions and subsidies to investors on mandi tax and stamp duty. There will also be a production linked incentive to give an impetus to industries coming to MP,” he added.

Key requirements of investors looking to invest in the state are availability of raw material and water as it is a water-intensive industry.


MPIDC Indore executive director Rohan Saxena said, “In Indore region around 10 industries have shown interest in setting up ethanol plants. Average land requirement per industry is about 15 hectare and a few of them have seen land at Nemawar and Dhamnod.”

HPCL will set up a Rs 400 cr Ethanol Plant in Himachal Pradesh

The oil marketing companies will float tenders or sign an MoU to lift ethanol from manufacturers and final blending will be done by oil marketing companies. Centre has laid down a target of achieving 20 per cent ethanol blending with petrol by 2025, a move aimed at reducing oil imports. At present, ethanol blending in the country is 8.5 per cent.

An official from a state-run oil marketing company wishing not to be named said, “The availability of ethanol is limited and MP has no major ethanol producer. We are dependent on Maharashtra and Uttar Pradesh to source ethanol. If manufacturers meet the laid standards we lift ethanol and blend in our facility.”
Another state-run oil marketing company official said, “The same model of lifting ethanol from private players will be implemented in MP once units come into production. But the key is to match quality parameters set by industry.”

The above news was originally posted on


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