Ahmedabad plant takes advantage of Govt interest subsidy.
Encouraged by the Union Food Ministry’s interest subsidy scheme, Grainspan Nutrients’ two plants in Ahmedabad, a combined investment of Rs.520 crore, are supplying supplying ethanol-based green fuel for blending with petrol.
The two plants have installed capacity of 350 kilolitres per day from feedstock of maize and rice.
Grainspan’s first grain-based ethanol plant, located at Bhamsara Village in Ahmedabad district, became operational in May 2023 with a capacity of 110 kilolitres per day. This plant was Gujarat’s first grain-based-ethanol facility.
Enthused by the success, the company last month (in May) commissioned its second Rs.360 crore facility with an installed capacity of 240 kilolitres per day at the same location.
The company supplies ethanol to Oil Marketing Companies (OMCs) under the Ethanol Blending Programme (EBP).
Grainspan, which has been into manufacturing of food ingredients since 2014, forayed into ethanol a few years back to diversify its business taking advantage of interest subsidy.
Grainspan Ingredients Pvt Ltd CFO Pankit Shah added, “The first plant has been set up with the help of Central Government interest subsidy. We have taken a loan of Rs.120 crore for the first plant. But there is no interest subsidy on the second plant.”
In the 2024-25 Ethanol Supply Year (ESY) that runs from November to October, Grainspan Nutrients will supply around 8 crore-litre to OMCs at a fixed rate of nearly Rs.72 per litre. In the next ESY, the figure will reach 12 crore litres generating a topline of more than Rs.800 crore. Fiinews.com
