Nayara Enters into Ethanol Production with Investment of Rs 600 Cr

Rosneft-upheld Nayara Energy Ltd has declared a funding of ₹600 crore to lay out two ethanol plants in Andhra Pradesh and Madhya Pradesh, each with a creation limit of 200 kilolitres each day.

The move, by the public authority's 2025 ethanol-mixing objective, will help the oil-refining to fuel-retailing major accomplish vertical reconciliation, the organization said in a proclamation. Land has proactively been procured for the proposed offices in the two states, it added.

“Establishment of ethanol facilities will significantly enhance Nayara Energy's ethanol supply reliability, playing a crucial role in meeting the Indian government's 20% blending target by the end of fiscal year 2025-2026," Alessandro des Dorides, chief executive officer, Nayara Energy, said. 

"This strategic move highlights our dedication to sustainability, regulatory compliance, and long-term growth in the dynamic energy sector. By expanding the presence in the ethanol segment, we aim to actively contribute to India's renewable energy goals and fostering a greener future," he added.

The organization expects to set up five ethanol production facilities, totaling 1,000 kilolitres daily. "As a major downstream player, delivering 8% of India's refining output, Nayara Energy fuels the country's dreams and aspirations, contributing significantly towards India's energy security," the company said.

Under its ethanol-mixing program, the public authority aims to have 20% ethanol-mixed petroleum accessible at all fuel pumps in India by 2025. Presently, all petrol pumps sell 10% ethanol-mixed petroleum. The move aims to diminish reliance on imported raw petroleum and guarantee lower contamination.