Three new ethanol units to be built in Bihar’s Muzaffarpur

The Muzaffarpur district of Bihar will be the setting up of three new ethanol plants and the construction has been planned by three different companies. As per reports, these companies have submitted proposals to the state’s Department of Industries, which have been forwarded to the Bihar State Investment Promotion Board for approval.

Bihar is a leader in the sugarcane production in India today that hosts a large number of molasses run distillery units. As per experts, the ethanol manufacturing in Bihar through cane, maize and rice-residue as feed-stock could lead to greater growth. The ethanol production in Bihar is expected to rise beyond 8 lakh kilolitres by the end of this year with about 15 plants operational.

One of the proposed plants is in Damodarpur, Motipur, and is currently under consideration. One more will come up in the Motipur industrial area and the final is planned for Jahura in Sahebganj block. All three ethanol facilities will produce ethanol from grains. While the proposals for the two Motipur-based units have already received approval, the Jahura plant is expected to gain approval at the next board meeting.

As far as the ethanol projects are concerned, the plants are to be established in the western subdivision of Muzaffarpur and are projected to generate about both directly & indirectly 5,000 jobs. Around 3,000 individuals will be employed directly in the facilities, with another 2,000 opportunities arising in transportation and related sectors.

The Bihar government has identified ethanol production as a priority industry under its industrial policy, particularly focusing on grain-based ethanol. This initiative aligns with the state’s vision of becoming a major hub for ethanol production.

In addition to boosting employment, the new plants will provide significant benefits to farmers by creating a market for local grains. Recognized as a high-priority sector, ethanol manufacturing is supported by government subsidies and other incentives to encourage its growth.

Recently, Bihar’s Agriculture Minister Mangal Pandey requested the private to invest in hybrid maize seed production and warehouse infrastructure to support rising local demand including the ethanol. Bihar is aiming at maize cropping on 10 lakh hectares this year.