GACL and GAIL signed MoU for setting up a 500 KLD Bioethanol plant in Gujarat

Gujarat Alkalies arid Chemicals Limited (GACL) and GAIL (India) Limited (GAIL) have joined hands to set-up a Bioethanol plant of 500 KLD capacity. The Memorandum of Understanding (MoU) for setting up a Bioethanol plant in Gujarat and cooperation in other business areas of mutual interest was signed by Shri M V Iver, Director (Business Development) of GAIL and Shri Milind Torawane, IAS, Managing Director of GACL in the presence of Shri Bhupendrabhai Patel, the Hon'ble Chief Minister of Gujarat, Shri K Kailashnathan, IAS (Retd.), Chief Principal Secretary to Chief Minister of Gujarat, Shri Pankaj Joshi, IAS, Addl. Chief Secretary to Chief Minister of Gujarat and Shri Manoj Jamn, CMD of GAIL at Gandhinagar.

This step is taken in response to the Hon'ble Prime Minister of India's call for Atmanirbhar Bharat'. The Hon'ble Prime Minister has launched a Roadmap for 20% Ethanol Blending in Petrol by 2025, with a view to reduce import of crude oil and save valuable foreign exchange.

This plant will be using corn/broken rice as feedstock with eco-friendly technology and it will produce 500 KLD Bioethanol, which will be used for blending in petrol. As by-products from this plant, 135 KTPA Protein-rich Animal feed and 16.50 KTPA of Corn Oil while using corn as feedstock are also expected to be produced.

Dahod, Panchmahal, Aravalli and Mahisagar are major corn-producing districts in Gujarat and hence the project is likely to come up in one of these districts. A Detailed Feasibility Study through a third party is in progress for the project.

The estimated project cost is to the tune of Rs. 1,000 crores and it is expected to generate annual revenue of approximately Rs. 1500 crores.

An estimated savings of USD 70 million per year in Foreign Exchange outgo is expected through this project. Beyond the savings, this project will also generate direct and indirect employment for around 700 individuals. Long term supply contract for corn would encourage corn farming with sustainable, multi-fold income for farmers through increased productivity and assured market. Steps will also be taken to improve the productivity of corn in the State with the help of the Maize Research Centre in Godhra.

Shares of GAIL (India) Limited was last trading in BSE at Rs. 129.55 as compared to the previous close of Rs. 129.70. The total number of shares traded during the day was 581943 in over 7633 trades.

The stock hit an intraday high of Rs. 130.15 and intraday low of 127.60. The net turnover during the day was Rs. 75083056.00.

Shares of Gujarat Alkalies and Chemicals Limited was last trading in BSE at Rs. 617.80 as compared to the previous close of Rs. 625.65. The total number of shares traded during the day was 14815 in over 933 trades.

The stock hit an intraday high of Rs. 643.00 and intraday low of 615.35. The net turnover during the day was Rs. 9253018.00.

Source : Equity Bulls

Keywords

GAILIndia INE129A01019 GujaratAlkaliesandChemicals INE186A01019 JV BioethanolPlant 500KLD