Krishak Bharati Cooperative Ltd (KRIBHCO), a fertiliser cooperative, is investing around Rs 1,100 crore to set up three ethanol manufacturing plants using maize and broken rice as feedstock. Three plants with a capacity of 250 kilo litres per day are being built in Gujarat, Telangana, and Andhra Pradesh.

"As part of our diversification strategy, we are establishing three bio ethanol plants," said KRIBHCO Chairman Chandra Pal Singh.

According to Rajan Chowdhry, Managing Director of KRIBHCO, these plants are expected to be operational by the end of the year.

"We are investing approximately Rs 1,100 crore in establishing these three plants." "We will use maize and broken rice as feedstock," Chowdhry told PTI.

He explained that the investment is being funded through a combination of internal accruals and debt.

According to Chowdhry, the cooperative will provide ethanol to oil marketing companies (OMCs) for blending with petrol.

Currently, ethanol blending with petrol is at 12%, with a goal of reaching 20% by 2025.

KRIBHCO has established a wholly owned Special Purpose Vehicle (SPV) called 'KRIBHCO Green Energy Private Limited' to establish three bio ethanol projects in Gujarat, Andhra Pradesh, and Telangana.