Odisha: Bargarh 200-KLPD ethanol plant by BPCL in advanced stages of construction

The ethanol plant being built by Bharat Petroleum Corporation Ltd. (BPCL) in Bargarh, Odisha, is approaching the final stages of construction and the company has already invested about Rs 1,243 crore in the project.

Minister of State for Petroleum and Natural Gas, Suresh Gopi, was replying in the Parliament to a recent question about the plant’s establishment, current progress, estimated completion timeline, and total fund allocation of the ethanol project.

“BPCL is implementing a 200 KLPD integrated ethanol plant at Bargarh, Odisha, consisting of 100 KLPD each of First Generation (1G) and Second Generation (2G) technology. With an approved cost of ₹1,557 crore, the project has incurred ₹1,243 crore in expenditure so far and is in advanced stages of construction,” the Minister held in the Lok Sabha.

Highlighting the broader impact of the ethanol facility, he added that the integrated ethanol project in Bargarh will generate direct and indirect employment, foster local entrepreneurship, and create demand for raw materials, machinery parts, and other locally sourced goods and services.

In July this year, the Central Government had notified the “Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana” with the objective of providing financial support for setting up Second Generation (2G) bioethanol projects in the country. The BPCL-led ethanol plant in Bargarh in Odisha is listed under the “Commercial” category,

The aim of the government under Pradhan Mantri JI-VAN Scheme is to encourage the establishment of 2G bio-ethanol plant using cellulosic and lignocellulosic biomass including petrochemical route and other feedstocks.

To meet the E20 target (20% ethanol blending by 2025), BPCL is expanding ethanol storage capacity across all depots and terminals in phases, aligning with the anticipated increase in demand driven by the 20% blending rollout by 2025. The Union Petroleum Minister Hardeep Singh Puri has held recently that India has achieved the ethanol blending in fuel to the tune of 16.9%.