Odisha Government Invests ₹15.84 Billion for Ethanol Cogeneration and Solar Projects

The Government of Odisha has approved four industrial projects, including three grain-based ethanol plants and one solar project estimating ₹15.84 billion (~$213 million) in investments. These projects together are expected to create more than 1,000 jobs in the state.

The projects were approved during the 102nd meeting of the State-Level Single Window Clearance Authority held last week.

The Odisha government approved an 18.75 MW solar project by Aditya Birla Renewables against an investment of ₹894 million (~$12 million) to be set up at Saintala, Balangir district, which could create 28 new jobs.

In 2018, Aditya Birla Renewables had won the bid to develop 75 MW of solar projects in Odisha quoting ₹2.79 (~$0.0406)/kWh in an auction held by the Grid Corporation of Odisha (GRIDCO). The projects are operational since 2020.


Aditya Aluminium, a unit of the Aditya Birla Group, has also set up a 24 MW solar project at Lapanga in the Sambalpur district of Odisha.

The state government also approved a 500-kilo liter per day (KLPD) grain-based ethanol plant and an 8 MW co-generation (co-gen) power project by the Indian Oil Corporation (IOCL) against an investment of ₹8.7 billion (~$117 million). The plant would be set up in Balgopalpur Industrial Estate, Balasore, which will generate over 194 potential employment opportunities.

The government also approved Hindustan Petroleum Corporation’s (HPCL) ethanol plant (in two phases) against an investment of ₹5 billion (~$67.2 million) to be set up in Umerkote, in Nabarangpur district, expected to generate about 240 new employment opportunities.

Lastly, the state-approved Newalt Energy’s 100 KLPD grain-based ethanol plant along with compressed biogas plant of 12 tons per day capacity and 2.20 MW co-gen power project against an investment of ₹1.25 billion to be set up at Nuakheta, Bantala, in Angul district, generating over 650 new jobs.

In a press release, the state government has stated that the Government of India has fixed a target of 10% blending of fuel-grade ethanol with petrol by 2022 and 20% blending by 2025.

The Ministry of Road Transport and Highways had greenlit the use of E20 – a blend of 20% ethanol and 80% gasoline – as an automotive fuel. Mass emission standards for the use of E20 have also been notified in the Central Motor Vehicles (Fourth Amendment) Rules, 2021, which came into force on March 8, 2021.

The Department of Food & Public Distribution has announced that it would extend financial assistance to project proponents to enhance their ethanol distillation capacity. The move is in line to achieve 20% blending with crude oil by 2025 and enhancing ethanol production capacity in the country.