Mumbai-based Balaji Group of Industries is planning to set up an ethanol refinery project with an investment of Rs 100 crore in Orissa. The plant capacity will be 40,000 lit/ day ethanol.
Laxmipathi Balaji Sugar & Distilleries, a group company which has acquired the co-operative sugar mills in Badamba in Orissa, has entered into an agreement with the Vizag oil refinery to supply ethanol, popularly known as green petrol. It will be mixed to the extent of 10% with petrol to control emission of carbon dioxide (CO2).
According to a spokesperson of the company, financial institutions have agreed to fund the project. The company is also proposing to go for an IPO to raise money from the capital market.
Meanwhile, the company has announced that the sick sugar mill would be opened for crushing in November 2007. Till the crushing season begins, the mill facilities will be used for refining damaged sugar/raw sugar from Mumbai and Malaysia, the spokesperson said.
Balaji Sugar has acquired the sugar mill in 2005, dishing out Rs 8.27 crore to the state co-operative department, since it has invested to the tune of Rs 8 crore for modernisation and capacity expansion of the mill.
The company is also planning to set up facilities for co-generation, using the crushed canes. The power will be utilised by the company in its proposed steel plant.