News: Brazil to set up ethanol plants in India
(NDTV 21/04/2006) Mumbai - If India takes it cues from Brazil, the solution to high oil prices might come from the farm sector. In the green sugarcane fields hides a sweet way to cut India's fuel import bill.
It comes out from the sugar mills as ethanol that's produced from the by-product, molasses. And the ethanol can be mixed with the fuel that's pumped into your car, reducing its price.
In fact the government plans to allow about 10 per cent ethanol mix in petrol and diesel, and estimates suggest that will save India about 200,000 barrels of crude everyday.
And India's ethanol business is likely to grow to a size of $10-$12 billion in the next three years.
That's what has brought a group of Brazilian ethanol makers to Mumbai and they have tied up with a local partner Gill and company to set up ethanol plants in India.
They will set up 15 plants in next two years across the country with an investment of Rs 60 to Rs 85 lakhs each.
"India has the largest potential for ethanol production after Brazil being the largest producer of sugarcane. We are here to bring technology for ethanol dehydration," said Marco Fattore, Interunion Comercio Internacional.
"This technology is not only for the sugar produce, but can also be used to produce ethanol from wheat corn etc and has an unlimited market," said Kantilal V Shah, MD, Gill & Co.
Ethanol production costs only one fourth per litre of what you pay at retail gas stations.
And if the government does go ahead and allow a 10 per cent blend of ethanol in fuel, it could very well save the government a lot of money that it otherwise pays to import crude at such inflationary prices.
It comes out from the sugar mills as ethanol that's produced from the by-product, molasses. And the ethanol can be mixed with the fuel that's pumped into your car, reducing its price.
In fact the government plans to allow about 10 per cent ethanol mix in petrol and diesel, and estimates suggest that will save India about 200,000 barrels of crude everyday.
And India's ethanol business is likely to grow to a size of $10-$12 billion in the next three years.
That's what has brought a group of Brazilian ethanol makers to Mumbai and they have tied up with a local partner Gill and company to set up ethanol plants in India.
They will set up 15 plants in next two years across the country with an investment of Rs 60 to Rs 85 lakhs each.
"India has the largest potential for ethanol production after Brazil being the largest producer of sugarcane. We are here to bring technology for ethanol dehydration," said Marco Fattore, Interunion Comercio Internacional.
"This technology is not only for the sugar produce, but can also be used to produce ethanol from wheat corn etc and has an unlimited market," said Kantilal V Shah, MD, Gill & Co.
Ethanol production costs only one fourth per litre of what you pay at retail gas stations.
And if the government does go ahead and allow a 10 per cent blend of ethanol in fuel, it could very well save the government a lot of money that it otherwise pays to import crude at such inflationary prices.
posted by InCar Group Press Room at 18:52
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