GAIL (India) on Friday announced that it entered into a Memorandum of Understanding (MoU) with Gujarat Alkalies & Chemicals for setting up a 500 litre per day bioethanol plant at an estimated investment of Rs 1,000 crore in Gujarat.
The scope of the MoU is for setting up 500 kilo litre per day bio ethanol plant in Gujarat and exploring other business opportunities of mutual interest.The estimated project cost is to the tune of Rs 1,000 crore and it is expected to generate annual revenue of approximately Rs 1500 crore. An estimated savings of USD 70 million per year in foreign exchange outgo is expected through this project.
The plant will be using corn/broken rice as feedstock with eco-friendlv technology and it will produce 500 KLD bio ethanol, which will be used for blending in petrol. As by-products from this plant, 135 KTPA protein-rich animal feed and 16.50 KTPA of corn oil while using corn as feedstock are also expected to be produced.
Gujarat Alkalies and Chemicals is engaged in the business of industrial chemical. It is one of the largest producers of caustic soda in India. The company's net profit jumped 12.9% to Rs 74.57 crore on a 29.4% surge in net sales to Rs 825.76 crore in Q2 FY22 over Q2 FY21.
GAIL (India) is an integrated energy company in the hydrocarbon sector and is engaged in gas marketing. The Government of India held 51.85% stake in the company as of 30 September 2021.
The company reported 159% rise in consolidated net profit to Rs 2,883 crore in Q2 FY22 from Rs 1,112 crore in Q2 FY21. Net sales during the quarter increased by 67% YoY to Rs 21,758 crore.
Shares of GAIL (India) ended 0.12% lower at Rs 129.55 while Gujarat Alkalies & Chemicals closed 1.25% lower at Rs 617.80 on Friday.
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