Dalmia Bharat Sugar and Industries will invest Rs 263 crore to set up two grain-based distilleries to produce ethanol, informed the company in a regulatory filing.
The company has received in-principle approval from its board to set up two distilleries to produce around 6 crore litre of ethanol.
The steps have been taken in line with the Central government’s decision of advancing the 20% ethanol blending target to 2025.
The company said its existing installed capacity is around 10 crore litre, which is expected to be increased to 15 crore litre post implementation of distillery expansion plan already approved in the earlier board meetings. After the board’s decision on Friday, expanded capacity will be around 21 crore litre of ethanol.
The company on Friday reported that consolidated net profit of Dalmia Bharat Sugar and Industries Ltd for Q1 has declined marginally to Rs 124.34 crore. The net Q1 profit last year was Rs 125.86 crore.
The central government with an aim to lower the expenditure on foreign exchange has set a target of blending 20 per cent ethanol with petrol by 2025.
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