Lok Sabha Question No. 3300 (UNSTARRED), answered on 2026-03-12
Subject: Status of BPCL Ethanol Bio-refinery Project in Odisha
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Pradeep Purohit

## LOK SABHA

TO BE ANSWERED ON 12 th March, 2026

## STATUS OF BPCL ETHANOL BIO-REFINERY PROJECT IN ODISHA

## 3300. SHRI PRADEEP PUROHIT:

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) the current status of the BPCL's integrated ethanol bio-refinery project at Bargarh district in Odisha and whether construction work is complete and commercial operations have commenced;
- (b) if so, the details of the total approved investment or capital cost of the project, the technology used (1G/2G integrated) and the expected annual ethanol production capacity;
- (c) the details of the revised schedule for implementation and commissioning of the project and reasons for delays, if any
- (d) whether any ethanol has already been produced or dispatched from the facility and if so, the details of date and quantity produced;
- (e) the details of the estimates of direct and indirect employment already generated and expected to be generated by this project once operational; and
- (f) the details of the tangible benefits expected from this project in terms of supporting the Ethanol Blended Petrol (EBP) Programme and farmers' income in western Odisha?

## ANSWER

पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢालय मᱶ रा᭔य मंᮢी ( ᮰ी सुरेश गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI SURESH GOPI)

(a) to (f): Under the Pradhan Mantri JI-VAN (Jaiv Indhan - Vatavaran Anukool fasal awashesh Nivaran) Yojana, Bharat Petroleum Corporation Limited (BPCL) has set up an integrated biorefinery at Bargarh, Odisha comprising First Generation (1G) and Second Generation (2G) ethanol production facilities. M/s Praj Industries Limited is technology provider for the project.

Total approved capital cost of this Bio-Refinery is Rs. 1775 crore including taxes. The designed annual production capacity of 1G Ethanol plant is 3.3 crore litre and that of 2G Ethanol plant is 3 crore litre, which is envisaged to support the EBP Programme.

During the construction of the project, around 15.25 lakh man-days of direct and indirect employment were  generated.  Employment  for  about  725  people  is  estimated  to  be  generated  during  the  full operational  phase  of  the  plant.  Further,  biomass  supply  chain  is  expected  to  generate  indirect employment  to  around  1200  rural  individuals  and  foster  entrepreneurship  among  around  250  local entrepreneurs, farmers and rural women's self-help groups.

The  implementation  timeline  was  affected  due  to  factors  such  as  disruptions  during  the  pandemic period,  limited  availability  of  specialised  technology  vendors  and  extended  delivery  timelines  for certain critical equipment. Further, 2G ethanol technology for commercial-scale production is still at a nascent  stage,  and  project  developers  worldwide  are  facing  challenges  in  the  biomass  conversion process, leading to longer commissioning timelines compared to conventional plants.

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