UP’s First Multi-Unit Ethanol/Sugar project planned in Mathura

Uttar Pradesh is set to get its first multi-unit ethanol and sugar complex in the Chhata area of Mathura district. The ethanol project has been planned at an estimated investment of Rs 200 – 250 crore.

State Sugarcane Development and Sugar Mills Minister Chaudhary Laxmi Narayan gave detailed information about the project at a press conference in Mathura. The minister held that the facility will be developed in three phases and will also include power generation.

As per reports, Chief Minister Yogi Adityanath is expected to lay the foundation stone for the project soon. In the first phase, a 120 KLPD ethanol plant will be established to produce ethanol from B-Heavy molasses during the sugarcane season. During the off-season, the facility will use corn and rice as feedstock. The plant is expected to operate for 11 months a year and produce around 36.9 million litres of ethanol annually.

The second phase will involve setting up a sugar mill as sugarcane availability in the region increases. The third phase will add a co-generation unit to produce electricity.

The government had floated tenders six times to revive the Chhata Sugar Mill, but received no applications. It has now decided to develop the proposed integrated facility through a partnership model, with completion targeted within two years.

The government also plans to provide farmers with improved sugarcane varieties and encourage expansion of sugarcane cultivation in the region.

According to the minister, the project will generate employment for thousands of young people in and around Mathura while providing better returns to farmers for their produce. He also appealed to ex-servicemen protesting outside the Chhata Sugar Mill to withdraw their agitation and support the proposed project.

Uttar Pradesh ranks among India’s leading ethanol-producing states, producing around 2.23 billion litres of ethanol in 2024–25, as per one estimate. Its ethanol industry is primarily driven by molasses-based production linked to the state’s large sugarcane sector and has more 75 registered distilleries contributing to its biofuel ecosystem.