The Bihar government approved incentives worth ₹73.45 crore for the establishment of a grain-based ethanol production facility and captive power generation unit in Kaimur district. The decision marks another significant step in Bihar’s efforts to strengthen industrial development, attract investments, and expand biofuel production capacity in the state. The project has been approved under the Bihar Industrial Investment Promotion framework, which aims to encourage industrial growth and support renewable energy initiatives across Bihar.
Ethanol project to boost biofuel production capacity
The proposed facility will include a 60 KLPD (kilolitres per day) grain-based ethanol plant along with a 2-megawatt captive power generation unit. The integrated project is expected to enhance ethanol production infrastructure while supporting cleaner energy generation for industrial operations. The development aligns with India’s broader ethanol blending programme and the government’s focus on increasing domestic biofuel production to reduce dependence on fossil fuels and imported crude oil.
Government strengthens industrial and renewable energy investment push
The approval reflects Bihar’s ongoing efforts to attract fresh investments in industrial manufacturing, renewable energy, and sustainable fuel production sectors. Through policy incentives and investment support mechanisms, the state government aims to position Bihar as an emerging destination for biofuel and industrial projects. As reported by chinimandi.com, with growing national demand for ethanol and renewable energy solutions, grain-based ethanol plants are increasingly becoming an important component of India’s energy transition and rural industrial development strategy.
