Bengaluru: Jagatjit Industries Limited (JIL) has received a ₹ 180 crore term loan from the Indian Renewable Energy Development Agency (IREDA) to establish a 200 KLPD grain-based ethanol distillery plant in Hamira, Punjab, reported The Hindu Businessline.
The facility will produce ethanol for blending with petrol, thereby contributing to the biofuel sector. JIL has already obtained environmental clearance from the Ministry of Forest & Environment during the fiscal year 2022-2023 for this ethanol manufacturing facility. The total investment for the project is estimated at around ₹210 crores, with a projected breakeven period of 5 years.
Roshini Sanah Jaiswal, Promoter and Executive Director at Jagatjit Industries Limited, expressed her enthusiasm, saying, “We’re thrilled by the trust placed in us by the Indian Renewable Energy Development Agency. This loan accelerates our timeline to have the plant operational by Q4 2024. We anticipate ₹400 crore in revenue from the ethanol plant, with an EBITDA margin of approximately 15 per cent starting from year one. Ethanol is projected to contribute 20 per cent of the company’s total revenues in FY 24-25, increasing to a 25 per cent share in FY 25-26.”
Jaiswal also highlighted the employment opportunities that the new greenfield plant will generate for local workers. She noted that the government’s emphasis on the ethanol economy aligns with JIL’s commitment to fostering green growth in India. JIL takes pride in being at the forefront of the transformative journey towards sustainable and greener energy solutions for India.
