₹156-crore Ethanol Plant to come up in East Singhbhum
PNS
Jamshedpur
East Singhbhum district is set to witness a major industrial boost with the establishment of its second greenfield ethanol plant in Ruaam village of Musabani block. The project, involving an investment of approximately ₹156 crore, is expected to generate direct and indirect employment opportunities for around 200 local youths.
The upcoming facility is being seen as a significant step towards strengthening the district’s industrial infrastructure while contributing to the country’s growing ethanol production capacity.
The ethanol plant is being established by Haryana-based Kizlak Stark Agro Private Limited. For the project, the Jharkhand government has allotted 25 acres of land to the company.
According to project details, the plant will have the capacity to produce 100 kilolitres of ethanol per day. In addition, a co-generation unit will be installed within the premises, enabling the generation of 2.8 megawatts of electricity.
Commercial production from the facility is expected to begin during the 2026-27 financial year.
The Musabani unit will become the second ethanol plant in East Singhbhum district. The first plant, operated by Global Spirits Limited, has been functioning successfully since March 2023 at Olda village near Badsol on NH-6 in Bahragora block.
The Bahragora facility initially started with a production capacity of 140 kilolitres per day, which has subsequently been expanded to 220 kilolitres daily. The plant also generates 5 megawatts of electricity through its co-generation system.
The new project is expected to contribute to the Government of India’s ambitious Ethanol Blended Petrol (EBP) Programme. The Centre is working towards increasing ethanol blending in petrol to 20 percent under the E-20 fuel initiative, aimed at reducing dependence on imported crude oil and lowering carbon emissions.
Industry experts note that ethanol is an environmentally friendly fuel that helps improve energy security while supporting the agricultural economy.
Apart from its use in fuel blending, ethanol is widely used as an organic solvent in various industries. It serves as a key ingredient in the manufacture of paints, varnishes, inks, adhesives, pharmaceuticals, cosmetics, and plastic products.
Technical data indicates that approximately 45 litres of ethanol can be produced from one quintal of rice. Additionally, the solid residue generated during production can be processed into high-quality animal feed, making the manufacturing process largely waste-efficient and environmentally sustainable.
Officials believe that the project will not only create employment opportunities but also stimulate economic activity in the Musabani region through the development of ancillary industries, transportation services, and local supply chains.
With the addition of a second ethanol plant, East Singhbhum is steadily emerging as an important hub for biofuel production in Jharkhand, aligning industrial growth with the country’s renewable energy goals.
