Page 140 - CW E-Magazine (31-10-2023)

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BIOFUELS

Jagatjit Industries secures term loan from IREDA

for ethanol plant
Jagatjit Industries Ltd. (JIL) has by the ethanol plant will be reinvested
received a sanction of term loan of into the IMFL business and allocated
Rs. 180-crore from Indian Renewable towards debt repayment. The ethanol
Energy Development Agency (IREDA) business is anticipated to achieve
for the establishment of a 200-klpd EBITDA positivity right from its
(kilolitres per day) grain-based ethanol inaugural year of operation.
distillery, spread across 25 acres in
Hamira, Punjab. “The new greenfi eld plant will
generate employment opportunities
JIL has already secured environ- for local workers. The government’s
mental clearance from the Ministry of push towards the ethanol economy
Forest & Environment in FY 2022- We anticipate Rs. 400-crore in reve- aligns with our goal of fostering green
2023 for this facility. The total pro- nue from the ethanol plant, with an growth in India. We are proud to be
ject investment is approximately EBITDA margin of approximately at the forefront of this transforma-
Rs. 210-crore, with a projected break- 15% starting from year one. Ethanol tive journey towards sustainable and
even period of fi ve years. is projected to contribute 20% of the greener energy solutions for India,”
company’s total revenues in FY24-25, Ms. Jaiswal added,
“We’re thrilled by the trust placed increasing to a 25% share in FY25-26,”
in us by the Indian Renewable Energy Ms. Roshini Sanah Jaiswal, Promoter JIL recently reported total revenue
Development Agency. This loan acce- and Executive Director, JIL said. of `181.17-crore in Q1 FY24, repre-
lerates our timeline to have the plant senting an increase of 42% compared
operational by Q4 2024. The positive cash fl ows generated to the same period last year.

BIOFUELS
Ethanol blending falls to 11.72% in August amidst

feedstock shortage

The Percentage of ethanol blended by 17.2%, from Rs. 56.35 a litre to
with petrol by oil marketing companies Rs. 66.07. OMCs have also allowed
(OMCs) fell to 11.72% in August this the switching of feedstock from FCI
year from 11.77% in July, due to un- rice to DFG and maize.
availability of feedstock such as rice.
For the ethanol supply year (ESY)
The Ministry of Petroleum and Natu- 2022-23 (December 1 to October 31),
ral Gas (MoPNG) attributed the decline leries halted operations for more than a OMCs fl oated a tender for 599.7 crore
in blending to the discontinuation of month, the ministry added. The OMCs litres of ethanol, against which letters
rice supply by Food Corporation of increased the ex-mill price of ethanol of intent (LoIs) for 564.45 crore litres
India (FCI) since July 2023. The lack from DFG and maize in two tranches were issued. OMCs received 413.47
of FCI rice supply led to a spike in during August. crore litres of ethanol, as of August
prices of other feedstock, namely 2023, and achieved a cumulative
domestic food grains (DFG) and maize, The DFG-based ethanol price has blending of 11.72% for ESY 2022-23.
in the market, and a fall in the supply been increased by 15.2%, from Rs. 55.4 In FY23 (April-August), OMCs also
of grain-based ethanol by 2.5-3 crore per litre to Rs. 64 per litre, while pri- procured 19.25 crore litres of biodiesel
litre per week, as grain-based distil- ces of maize-based ethanol were raised for the biodiesel blending programme.

140 Chemical Weekly October 31, 2023

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