Modi Naturals performs groundbreaking ceremony for new ethanol distillery

Modi Naturals Limited has recently performed the groundbreaking ceremony (bhumi pujan) of its greenfield ethanol distillery at Raipur in Chhattisgarh. The company is setting up a state-of-the-art distillery, which has a production capacity of 210 KLD, with a 6MW cogeneration power plant. To set-up this plant, Modi Naturals Ltd. incorporated a 100 percent subsidiary (wholly owned subsidiary) called 'Modi Biotech Private Limited' (MBPL).

MBPL has received in-principle approval for a 210 KLD distillery for the manufacture of ethanol from the Central Government, along with signing an MOU with the Chhattisgarh Government for the same. The company has already received environment clearance (EC) for the project from the Ministry of Environment, Forest and Climate change (MoEF&CC). The investment over the next two years is expected to be approximately INR 250 Cr., with the first phase of 110 KLD with an investment of INR 160cr, to be completed in the third quarter of FY 2022-23.

This project is also in line with the Honourable Prime Minister of India Shri Narendra Modi's vision & roadmap for the Ethanol Blended Petrol (EBP) program with a target of 20% blending by 2025.

Commenting on this announcement, Akshay Modi, Managing Director, Modi Naturals Ltd. said, "This significant development is a step forward to boost the Ethanol ecosystem of India. With this new ethanol plant, we will be able to counter serious challenges related with vehicle emissions, air-quality improvement, lower consumer fuel prices, use of damaged food grains, increasing farmers' incomes, employment generation, and greater investment opportunities."

MBPL and its Parent company have over four decades of experience and talent in managing a wide range of businesses and projects. For the building and commissioning of the ethanol project, the company has taken on board industry experts in the form of consultants, plant suppliers and in-house team.

According to a report by the International Energy Agency (IEA), India will become the thirdlargest market for ethanol in the world after the US and Brazil by 2026. Some of the driving factors include - government policies, overall transport fuel demand, costs and specific policy design, etc.

Shares of Modi Naturals Limited was last trading in BSE at Rs. 213.05 as compared to the previous close of Rs. 224.25. The total number of shares traded during the day was 36251 in over 333 trades.

The stock hit an intraday high of Rs. 224.00 and intraday low of 213.05. The net turnover during the day was Rs. 7765863.00.

Source : Equity Bulls

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