Krishak Bharati Cooperative Ltd (KRIBHCO), a fertiliser cooperative, is spending over INR 1,100 crore to build three ethanol production facilities using broken rice and maize as feedstock. These three facilities, each with a daily capacity of 250 kilo litres, are being built in Gujarat, Telangana, and Andhra Pradesh. As part of our diversification strategy, we are establishing three bio ethanol facilities, according to KRIBHCO Chairman Chandra Pal Singh.
By the end of the next year, these plants are anticipated to be operational, according to Rajan Chowdhry, managing director of KRIBHCO. "To set up these three units, we are investing about INR 1,100 crore. As feedstock, we'll use grains like broken rice and maize. Internal accruals and external borrowings are used to cover the investment.
The cooperative, according to Chowdhry, will provide ethanol to oil marketing companies (OMCs) for blending with fuel. The goal is to increase the ethanol blend with petrol from 12% today to 20% by 2025. For the purpose of establishing three bio ethanol projects at Hazira in Gujarat, Nellore in Andhra Pradesh, and Jagtial in Telangana, KRIBHCO has formed a 100% owned Special Purpose Vehicle (SPV) called "KRIBHCO Green Energy Private Limited."
According to the SPV's most recent annual report, the Department of Food and Public Distribution has given the interest subvention scheme for all three projects in principle permission as well as environmental clearance. The Lump Sum Turn Key (LSTK) contracts for all three bioethanol projects have been given to Excel Engineers and Consultants by the SPV. Financially speaking, KRIBHCO's total revenue increased by 95% to 25,715.07 crore during the previous fiscal year due to better sales, and it issued a 20% dividend.
The total income in the prior year was INR 13,194.50 crore. KRIBHCO's Chairman Singh recently addressed the organization's 43rd annual general meeting (AGM), stating that the cooperative made a pre-tax profit of INR 763.16 crore in 2022–23. In the prior year, the profit before tax was INR 1,493.26 crore. The management of the cooperative has approved INR 77.68 crore for the dividend outlay, and the cooperative has declared a dividend of 20% on equity capital for the year.