State-owned IREDA has sanctioned a term loan of Rs 180 crore to Jagatjit Industries Ltd, which the company will utilise to set up an ethanol facility in Punjab.
The total project investment is approximately Rs 210 crore, Jagatjit Industries Ltd (JIL) said in a statement on Tuesday.
"It has received a sanction of term loan of Rs 180 crore from Indian Renewable Energy Development Agency (IREDA). This capital is earmarked for the establishment of a...200 kilo litre per day grain-based ethanol distillery plant, over 25 acres in Hamira, Punjab," the company said.
The primary objective of this facility is production of ethanol for blending with petroleum, thereby contributing to the biofuel sector, the company said adding it aims to make the plant operational by fourth quarter of FY2024-25.
JIL has already secured environmental clearance from Ministry of Forest & Environment in FY 2022-23 for this ethanol manufacturing facility.
"We anticipate Rs 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. The new greenfield plant will generate employment opportunities for local workers," Roshini Sanah Jaiswal, Promoter and Executive Director at JIL, said.