Bihar to set-up 9 new ethanol facilities to bolster production by 1.3 billion liters

The Bihar state government has announced plans to develop nine (9) ethanol production facilities in the state by 2026. The Bihar government wants to increase the production of ethanol by estimated capacity of 1.3 billion liters through these 9 upcoming ethanol plants.

The proposed facilities will be set up in Bhagalpur, Begusarai, Kaimur, Muzaffarpur, Barh, Jamui, Vaishali, and Buxar. As per reports, ethanol production is anticipated to commence in Buxar and Bhagalpur by March 2025. Currently, Bihar hosts 12 ethanol factories, collectively producing 5.65 billion liters, with 60% of the output exported to southern states.

This initiative is also expected to bolster the Center’s Ethanol Blended Petrol (EBP) program and generate employment for approximately 50,000 individuals. Moreover, around 20,000 farmers cultivating sugarcane and maize across 15 districts of Bihar will benefit. This new move can potentially boost their income.

Expansion in Sugarcane & Maize Cultivation Areas

As per estimates, the establishment of these factories could expand sugarcane and maize cultivation to 1.7 million hectares which will be up from the current 1.3 million hectares. Presently, 360,000 farmers are engaged in cultivating these crops. Of the sugarcane harvest, 70% is supplied to sugar mills, while 20% is directed to ethanol plants.

Bihar Eyes Exports

Despite producing 5.65 billion liters of ethanol, Bihar’s output remains below demand. With significant portions exported, increasing production capacity has become a priority. The new factories are expected to enhance ethanol production, contributing to economic growth and strengthening the state’s financial stability.

It was reported by I Am Renew that in November that the Muzaffarpur district of Bihar will be the setting up of three new ethanol plants by three different companies directly & indirectly creating 5,000 jobs. The central government has also informed Parliament during the Winter Session that 47 ethanol projects in Bihar have received in-principle approval for interest subvention on bank loans aimed at establishing new distilleries or expanding existing ones.