Reliance Industries (RIL) is all set to establish a bio-fuel plant for blending petrol with 5% permissible ethanol in Kutch, Gujarat.

A senior RIL functionary has confirmed the development plan. But, he didn’t disclose any further details.

The executive said, “We have major plans to enter into the bio-fuel sector and are looking at various options, including the production of bio-fuel from jatropha.”

However, there is no conformation as to how RIL decided to make ethanol in the dry region.

One of the most popular ways of producing ethanol is from molasses extracted from sugarcane.
 
A researcher who has been working with the Gujarat state government for studying crops in Kutch said, “There has been some research on producing ethanol from jethropa. However, the tests have not been confirmed.”
 
Another view by the industry experts is that South Gujarat based sugar industry is not witnessing enough takers for the ethanol produced. So Reliance might enter into a deal for purchasing ethanol from the sugarcane industry.
 
Reliance has been planning to establish a unit in Kutch and post-earthquake, the company was making plans to set up a mobile handset unit in the region.

The company had planned to make a bio-fuel project a couple of years ago, but did not shortlist the location. With petrol reserves nearing exhaustion, ethanol blending is being favored for overcoming the shortfall.

In early trading (11:18 am), the shares of the company gained Rs 33.45 to trade at Rs 2,501.15 on the Bombay Stock Exchange (BSE).