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 ethanol-based green fuel for blending with petrol.
The two plants have installed capacity of 350 kilolitres per day, extracting ethanol from maize and rice feedstock https://www.makeinindia.com/home/.
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 https://www.bseindia.com/.
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 https://www.nseindia.com/.
The company supplies ethanol to Oil Marketing Companies (OMCs) under the Ethanol Blending Programme (EBP) https://www.opec.org/.
Grainspan, which has been manufacturing food ingredients since 2014, forayed into ethanol a few years back to diversify its business taking advantage of interest subsidy http://mopng.gov.in.
Grainspan Ingredients Pvt Ltd CFO Pankit Shah shared, “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 https://www.iea.org/.”
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
