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How to Start Ethanol Production plant in India


Introduction: Ethanol Production Plant

In this Blog, we shall discuss Ethanol production in India. We all know that India's pollution level is rising on a daily basis. Energy demand in India is growing due to the expanding economy, increasing population, and urbanization. About 98% of the fuel requirement in the road transportation sector is currently met by fossil fuels and the remaining 2% by biofuels. Apart from the alternative fuel source ethanol is one of the principal biofuels. Hence, starting an Ethanol production Industry is one of the best Ideas. India is facing a lot of issues regarding pollution and has taken numerous steps to reduce this. This blog will address all the information related to the ethanol industry and how to start an ethanol production Industry in India. 

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The main objective of this production plant is to blend it with petrol, currently, 10% of Ethanol is blended in petrol, and the Government of India has set a target of 20% ethanol blend by 2025. 

Starting an Ethanol production plant is one of the best steps for reducing pollution as well as being safe for the environment and the health of Individuals. There are several cases we have seen that people in India are suffering from diseases due to high pollution levels. Also, this will lead to a high death rate, most old age people die due to Asthma and tobacco in India. Thus, this blog will be beneficial for all Individuals in India because this is a major concern and would be for everyone’s benefit. 

Infrastructure And Machinery Required For The Production Of Ethanol 

  • Grain storage and cleaning plant
  • Grain grading and milling plant
  • Liquefaction plant 
  • Fermenting Unit
  • Distillation plant
  • Spent filtration plant
  • Spent wash evaporator
  • Cooling system

Apart from the above-mentioned machinery, there are some other infrastructures also required which include steam boilers, effluent treatment plants, etc.

Raw Materials Required To Start Ethanol Manufacturing 

  • C Heavy Molasses:- It gives 250 to 275 liters of rectified spirit per ton
  • B heavy Molasses:- It gives 300 to 325 liters of rectified spirit per ton  
  • Sugarcane Juice:- It gives 70 to 80 liters of rectified spirit per ton.
  • Cereals:- It gives 300 liters of rectified spirit per ton. 

The Manufacturing Process of Ethanol 

  • Fermentation:- Firstly, we have to ferment the Molasses, then add water and yeast to it and leave it for 24 hours after this the fermentation process will complete. 
  • Distillation:- To take out the sludge from the raw material it will pass through the sludge remover and send clear material for distillation, In the distillation process fermented wash will heat this leads to alcohol vaporized at the top after heating and alcohol condensed for collection. 
  • Set up a water treatment plant 

Ethanol plant sections 

  • Distillation section
  • Fermentation section 
  • Boiler section 
  • Turbine section 
  • The raw material storage section 
  • The finished product storage section 

Support From Government 

  • The government of India has fixed the minimum rate of ethanol made from different raw materials. For instance, ethanol made from C Heavy Molasses- Rs. 46.66, made from B heavy Molasses- Rs. 59.08, and from sugarcane juice- Rs. 63.45
  • Also, Government has reduced the GST rates from 18% to 5%.
  • According to the industries Act 1951, In the ethanol blended program government has allowed free movement of ethanol. 
  • The government gives a Moratorium  on bank loans for the ethanol production plant
  • Interest subvention scheme on loan 
  • The government gives subsidies and schemes. 

Advantages In The Production Of Ethanol Fuel

  • Firstly, Ethanol is a comparatively low-cost fuel and the best alternative which helps in controlling pollution relative to petrol. Carbon monoxide production from ethanol fuel is significantly lower than that of petrol engines. Nowadays, global warming is the major concern. by using the fossil fuels such as oil, natural gas, and coal it helps in bring out changes in weather patterns, rising sea levels. 
  • Secondly, Ethanol fuelled vehicles produced less carbon dioxide emissions, If the sale of Ethanol is relatively higher than that of petrol then ethanol vehicles' demand comparatively higher than that of petrol ones.
  • Ethanol is processed from corn so it will support farmers and creates domestic jobs. Also, it reduces dependency on the US for foreign oil and increases domestic energy independence.
  • Biofuels refer to the energy derived from plants such as sugarcane or grain and corn. In India, every tropical climate boost the growth of sugarcane. Hence, it is easily accessible in every part of the country.

What Is The Documentation Required For Ethanol Production? 

Here is the list of Additional Documents that are mandatory for Ethanol Production in India: 

  • Declaration by the EIA Consultant & its Authorization 
  • Land Documents along with the Diversion Order for Industrial use 
  • Memorandum & Articles of Association 
  • Letter of Intent received from oil Marketing Companies 
  • Surface Water Application made to Chhattisgarh Water Resources department
  • Steam, Water / Condensate, Fuel & Power Balances
  • Plant Layout

Certifications/ Licenses required to start the production of Ethanol 

  • State Excise- Ethanol Production 
  • Certificate of Incorporation & Business Commencement Certificate
  • Fire NOC
  • Permission from CPCB - plant operation 
  • NOC (No Objection Certificate)- It certifies by the respective district collateral for the production plant of Ethanol. Local bodies such as district and village bodies. 
  • IEM licenses for Sugar, Cogen & Ethanol
  • Water lifting permission from nearby water sources such as the Delhi Jal Board in New Delhi. 
  • State electricity board permission for electricity supply 
  • PESO 

Is The Ethanol Production Plant Business Profitable In India?

India shows a massive ethanol production plant in the year 2021, the market demand for ethanol is hiked by about 3250 million liters. Also, it is predictable that the market may amp up to 5412.06% million liters in the coming years probably by the year 2030. If the demand for ethanol rise then its supply automatically rises and it will lead to good protection in the market. 

It is going to expand aggressively by the year 2030. This growth shall be seen in the segments such as fuel additives, beverages, food, and many other sectors. Hence, the ethanol market is ready to take a leap in the period of forecast from now onwards.

Cost Of The Ethanol Production Plant 

The ethanol production plant Automatic Ethanol Plant, Capacity: 10 KLPD Cost Stating From 20 Cr. and it is depending upon the Different manufacturers.

Government Guidelines On The Ethanol Production Plant In India 

On World Environment Day, 5 June 2021, Honorable Prime Minister Shri Narendra Modi released the report of the expert committee on the Roadmap for Ethanol Blending in India by 2025. The central Govt. has set the target of blending 20 percent of ethanol with petrol by 2025. Haryana Government is focusing on boosting ethanol production. The state Government had earlier directed the industries to use stubble for ethanol and also planned to ramp up the production with the help of sugar mills. The government of India promotes the production of ethanol, and this government has banned imported blended ethanol. 


In this blog, we talked about the Production of Ethanol in India, there are a number of factors that we all need to consider such as certifications, Government Guidelines, Infrastructure, and Raw Materials. An Individual should keep in mind the above mention information related to ethanol production before starting the production. 

CORPSEED shall help you in getting the license that is required for the production of ethanol as well as guide you in the process. For more information related to this please visit our website CORPSEED

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.


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I'm Aastha, a fresh graduate and I worked with many news agencies and startup. I'm passionate about writing blogs and news stories. Now, I'm working as a content writer at Corpseed ITES Private Limited.

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