The 2.5 crore worth modern technology based plant, which has a capacity of over 45,000 litres, has been set up in cooperation with American company, Geo Cam, a spokesman of Cooperative Sugar Mills said.
The plant was inaugurated by chairperson of Panipat Cooperative Sugar Mills and Deputy Commissioner Panipat, Ajit Balaji, he added.
The spokesman said that the ethanol produced in the plant would be sold to Oil Marketing Companies, which would give an estimated profit of Rs 3 crore per year.
The mills would produce ethanol for about 300 days in a year. Production of one litre of ethanol would cost about Rs 36, he informed.