RIL to set up three ethanol plants in state

Reliance Industries (RIL) is planning to set up three sugarcane juice-based ethanol production plants in Maharashtra with a daily crushing capacity of around 10,000-12,000 tonne as well as make a foray into sugar production at a later stage.

This was revealed during a presentation made by an RIL delegation before the Union agriculture minister Sharad Pawar and members of the Maharashtra State Sugar Co-operative Federation (MSSCFL), here today.

MSSCFL officials said RIL is planning to start three sugarcane juice-based plants in the state "� one each in Pune, Osmanabad and Kolhapur districts.

Besides, RIL is also planning to produce ethanol directly from grains, turnips and damaged grains. However, the technology to produce ethanol from grains and turnips is yet to be commercially tested, sources added.

It is expected that RIL's first ethanol plant at Kurkumbh, in Pune district, will become operational by the crushing season of 2007-08, they said.

The sources further said RIL, which is currently studying sugar market operations "� nationally and internationally, also plans to foray into sugar production at a later stage. The company spokesman, however, refused to comment on the issue.

RIL's entry into the ethanol market has created a panic among the state's sugar barons, as they believe they cannot compete with RIL as the company can offer much higher prices to sugarcane growers.

After RIL's ethanol production plan had become public, Pawar took initiatives to involve RIL in a dialogue with MSSCFL. The RIL presentation was made Sanjiv Asthana, head-agro business, and R C Sharma, president-special chemicals.

MSSCFL Managing Director Prakash Naiknavare said, "We are not afraid of any competition from RIL or any other private player. In fact, we consider this as an opportunity for the sugar industry to come out of its protective shell and compete globally."

"Our vision is to make sugar by-products, and ethanol and co-generation a thrust area for the industry and we want to convert the present sugar co-operatives into sugarcane-processing units," he added.