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Balrampur Chini Mills Ltd to expand ethanol capacity again

The Board of Directors in their meeting held on 9th August, 2021, approved further capacity expansion of ethanol production from 840 KLPD to 1050 KLPD considering the huge untapped demand for ethanol due to the robust policies of Government of India on ethanol blending.

The existing capacity is 520 KLPD (capacity expansion upto 840 KLPD as approved on 4th November, 2020, is under progress and accordingly, the 5th distillery unit at Maizapur of 320 KLPD is expected to commence production by November 2022)

The proposed capacity addition is 210 KLPD (40 KLPD at Gularia and 170 KLPD at Balrampur). The expansion project requires Rs. 205 Crores (Approx.) (15 Crore for Gularia and 190 Crores for Balrampur). Out of which, Rs. 140 crores will be borrowed from Banks - Project Loans (Nil for Gularia and Rs. 140 crores for Balrampur) and Rs. 65 crores from internal accruals.

Enthused by the Hon'ble Prime Minister's program of achieving higher ethanol blending of 20% by the year 2025, the Company has decided to augment its distillery capacity at Gularia and Balrampur apart from the 5th distillery at Maizapur which was announced in November, 2020. Post expansion total distillation capacity of the Company would be 1050 KLPD resulting in almost 35 crore liters of distillation capacity on an annual basis. Further, there is assured off-take of Ethanol along with clear pricing mechanism.

Apart from the aforesaid expansion the Board has also approved additional capex for Modernization and upgradation of its sugar factories.



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