Ethanol manufacturing is one of the trending business ideas in India currently. As the government is planning to blend 20% ethanol with petrol by 2025 to reduce environmental pollution, the demand for ethanol is increasing in the country. In order to reach the 20% target by 2025, we’ll need around 1,016 crore liters of ethanol. About 334 crore liters of ethanol will be needed for other purposes. As a result, we must establish a capacity of 1,700 crore liters, assuming an 80% plant efficiency.
Apart from blending with petrol, ethanol is also used in plastic, pharma, cosmetics, and alcohol manufacturing industries. The government recently increased the prices of ethanol in the country to encourage the ethanol manufacturing industry in India. Ethanol can be manufactured from sugarcane, corn, and other food grains. The ethanol production plant with minimum capacity can be started with a budget of Rs. 50 to 80 crores.