Lok Sabha Question No. 1075 (UNSTARRED), answered on 2026-02-05
Subject: Performance of 2G Ethanol Plants
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Laxmikant Pappu Nishad

## LOK SABHA

## UNSTARRED QUESTION No. 1075

TO BE ANSWERED ON 5 th  February, 2026

## PERFORMANCE OF 2G ETHANOL PLANTS

## † 1075. SHRI LAXMIKANT PAPPU NISHAD:

## पेᮝोिलयम और ᮧाकृितक गैस मंᮢी

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

- (a) the approved and actual capital cost and item-wise expenditure details of the 2G ethanol plant established at the Indian Oil Corporation Limited (IOCL) Panipat Refinery based on Praj Industries technology;
- (b) the installed production capacity of the plant, the commercial production start date and year-wise/quarter-wise actual production and capacity utilisation percentage since commissioning of the said plant;
- (c) whether the Government is aware that the production of the Panipat 2G ethanol plant has consistently remained below its design capacity and if so, the technical and operational reasons therefor;
- (d) the  details  of  capacity  cost  commissioning  date  and  actual  production  of  2G  ethanol plants established by other Public Sector Oil Companies at locations including Bathinda, Odisha, Assam and Haryana, if so, the details thereof, plant-wise; and
- (e) whether  any  penalties  have  been  imposed  on  the  technology  providers  or  Engineering Procurement  and  Construction  (EPC)  contractors  for  failure  to  achieve  targets  despite performance guarantees, if so, the details thereof?

## ANSWER

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢालय मᱶ रा᭔यमंᮢी ( ᮰ी सुरेश गोपी )

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

(a)  to  (c):  Government  have  notified  the  'Pradhan  Mantri  JI-VAN  (Jaiv  Indhan  -  Vatavaran Anukool  fasal  awashesh  Nivaran)  Yojana'  2019,  amended  in  2024,  to  provide  financial assistance for setting up Advanced Biofuels projects in the country using lignocellulosic biomass and other renewable feedstock.

Under this scheme, the 2G commercial Ethanol Plant set up by Indian Oil Corporation Limited (IOCL) at Panipat (Haryana) commenced commercial production on 11.11.2023. The approved capital cost of the project is Rs. 909 crore ±10%, while the cumulative expenditure incurred by IOCL stands at Rs 984 crore. The plant has installed capacity of 100 Kilo Litre Per Day (KLPD) of ethanol production. The item-wise major package details including expenditure and quarterwise, year-wise  production  of  the  plant are  provided  at Annexure-I and Annexure-II , respectively.

The 2G ethanol plant is the first of its kind installed in India. The variability of straw quality in terms  of  moisture  and  silica  content  affects  the  downstream  treatment  section  and  creates associated  mechanical  issues.  IOCL  is  continuously  working  in  close  coordination  with technology provider, M/s Praj Industries, to resolve these issues in the plant. In December 2025, plant operated at 62% of its design capacity after carrying out recent modifications during the period November-December, 2025, to address process and mechanical challenges. As experience of ongoing and executed projects is gained, these plants will stabilize.

(d) 2G ethanol Plant of commercial scale of other Public Sector Oil Companies have also been  approved  under  the  PM  JI-VAN  Yojana.  These  are  (i)  185  KLPD  bamboo-based  2G ethanol plant at Numaligarh, Assam, by Numaligarh Refinery Limited through its joint venture company, Assam Bio Ethanol Private Limited (ABEPL), inaugurated in September, 2025, (ii) a 100  KLPD  paddy-straw-based  2G  ethanol  plant  at  Bargarh,  Odisha  by  Bharat  Petroleum Corporation Limited (BPCL) and (iii) another 100 KLPD paddy-straw-based 2G ethanol plant at Bathinda, Punjab by Hindustan Petroleum Corporation Limited (HPCL).

(e) Indian  Oil  Corporation  Limited  (IOCL)  has  deducted  Rs.  2.84  crore  under  Price Reduction  Schedule  (PRS)  as  per  the  Contract  against various  contractors  and  equipment suppliers of their 2G ethanol Plant at Panipat for delay in delivery and execution. IOCL has also withheld  Rs.  5.25  crore  of  the  total  license  fee  of  Rs.  10.5  crore  payable  to  the  technology provider as successful completion of Performance Guarantee Test Run of the plant has not been met as per the terms of Agreement. In addition, modifications implemented by Licensor costing Rs. 9.44 crore has been done free of cost.

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## ANNEXURE-I

ANNEXURE REFERRED TO IN REPLY OF PART (a) to (c) OF THE LOK SABHA UNSTARRED QUESTION NO. 1075 TO BE ANSWERED ON 05.02.2026 REGARDING 'PERFORMANCE  OF  2G  ETHANOL  PLANTS'  ASKED  BY  SHRI  LAXMIKANT PAPPU NISHAD.

Item-wise break up of Expenditure of Panipat 2G Refinery plant:

| Category                                                                                                  |   Total (Rs. Cr.) |
|-----------------------------------------------------------------------------------------------------------|-------------------|
| Electrical, Instrumentation, Piping                                                                       |                92 |
| Catalyst and chemicals                                                                                    |                10 |
| Equipment (Filter Press, Material Handling System, Proprietary equipment, Biomass Handling Equipment etc. |               430 |
| Civil, E&I, Mechanical Erection                                                                           |               319 |
| Licensor and Engineering, Procurement &Construction Management (EPCM) Fee                                 |                43 |
| Office Equipment &Furniture                                                                               |                 1 |
| Roads &Buildings                                                                                          |                30 |
| Site Development                                                                                          |                 6 |
| Statutory Clearance                                                                                       |                 4 |
| Construction Period Expenses (CPE), Interest During Construction (IDC), Miscellaneous charges             |                49 |
| Grand Total                                                                                               |               984 |

ANNEXURE REFERRED TO IN REPLY OF PART (a) to (c) OF THE LOK SABHA UNSTARRED QUESTION NO. 1075 TO BE ANSWERED ON 05.02.2026 REGARDING 'PERFORMANCE  OF  2G  ETHANOL  PLANTS'  ASKED  BY  SHRI  LAXMIKANT PAPPU NISHAD.

Details  of  quarter-wise and  year-wise production  of ethanol  at  IOCL's  2G  Ethanol  Plant, Panipat:

| Quarter                |   Quarterly Ethanol Production (in kilo Litre) | YearlyEthanol Production (in kilo Litre)   |
|------------------------|------------------------------------------------|--------------------------------------------|
| October-December, 2023 |                                          129   | 685.2 (FY: 2023-24 For 6 months)           |
| January-March, 2024    |                                          556.2 | 685.2 (FY: 2023-24 For 6 months)           |
| April-June, 2024       |                                          577.3 |                                            |
| July-September, 2024   |                                          430.2 | 2,076.6                                    |
| October-December, 2024 |                                          424   | (FY:2024-25)                               |
| January-March, 2025    |                                          645   |                                            |
| April-June, 2025       |                                          642.7 | 1,393.5 (FY:2025-26 for 9 months)          |
| July-September, 2025   |                                          176.7 | 1,393.5 (FY:2025-26 for 9 months)          |
| October-December, 2025 |                                          574   | 1,393.5 (FY:2025-26 for 9 months)          |

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