GAIL and Gujarat Alkalies to set up 500 KLPD Bio Ethanol Plant in Gujarat
GAIL (India) Limited and Gujarat Alkalies and Chemicals Limited have (GACL) inked a memorandum of understanding (MoU) for setting up a 500 KL per day Bio Ethanol Plant in Gujarat. The MoU was signed on Friday in the presence of the Chief Minister of Gujarat Bhupendrabhai Patel. "The MoU is for setting up 500 KL per day Bio Ethanol Plant and exploring other business opportunities of mutual interest", GAIL announced in a regulatory filing to the stock exchanges.
Earlier, in April, GAIL had invited Expression of Interests (EoIs) for partnering to set up a ~ 500 Kilo litres per day (KLPD) 1G grain-based ethanol plant for producing ethanol. As per GAIL's EoI document, this plant, after completion, will be sold to Oil Marketing Companies (OMCs) for further blending with petrol.
"A Joint Venture (JV) will be formed between GAIL and qualified bidder (In current case Gujarat Alkalies) for the above said purpose, in which GAIL would hold an equity of up to 50 percent or shall take equity (at par value) in an already formed new company", GAIL had said in its EoI document.