CM Yogi Adityanath to Inaugurate ₹1,200 Crore Ethanol Plant in Gorakhpur

As Gorakhpur continues to take strides in biofuel generation in the country, Uttar Pradesh Chief Minister Yogi Adityanath will inaugurate Rs 1,200 crore ethanol project on April 6, 2025.

The new ethanol plant is located in Sector 26 of Gorakhpur Industrial Development Authority (GIDA). It is the largest among three major biofuel projects in the region. Developed by Kayan Distillery Pvt Ltd, its foundation stone was laid on August 12, 2023. The facility, which processes rice and maize, has current capacity of 3.5 lakh liters of ethanol per day, with plans to scale up to one million liters in three phases.

Kayan Distillery has already secured an agreement with Indian Oil for ethanol supply, creating over 4,000 direct and indirect jobs.

This new ethanol plant also aligns with Prime Minister Narendra Modi’s push for biofuels, with Uttar Pradesh emerging as the country’s leading ethanol producer.

Vinay Kumar Singh, Managing Director of Kayan Distillery, held that the ethanol facility is the largest ethanol factory in Asia and will utilize grains as the primary raw material for ethanol production. The plant’s operations are expected to enhance agricultural procurement, providing direct benefits to farmers.

According to reports, the factory successfully completed a trial run 30 days ago. While the inauguration was initially set for April 2, it has now been rescheduled for April 6.

Moreover, the UP government has allocated ₹90 crore in the 2025-26 budget for an ethanol plant at Pipraich Sugar Mill. Designed to produce 60,000 liters of ethanol daily from sugarcane juice, this facility aims to improve payment efficiency for farmers.

Meanwhile, the Indian Oil-backed Biofuel Complex in Dhuriyapar is also preparing for ethanol production. Following the commissioning of a ₹165 crore compressed biogas (CBG) unit, ethanol manufacturing will begin in the project’s second phase.

With these developments, Gorakhpur is poised to become a key green energy hub in eastern Uttar Pradesh, reinforcing the state’s leadership in sustainable fuel production.