A total of three plants will be construct — two for IOCL and the remaining one for BPCL.
The company said it signed a binding agreement of cost sharing with Indian Oil Corporation Limited to set up one plant each at Panipat, Haryana and Dahej, Gujarat.
The plants will have capacity to produce 100 Kilo litres of ethanol per day, it said.
The company had earlier signed an MoU for the two plants.
Secondly, Praj Industries also signed a new MoU with Bharat Petroleum Corporation to set up one 2G bio-ethanol plant in the state of Orissa having the capacity of 100 Kilo litres of ethanol per day.
“Project timelines and capital outlay estimations are under finalisation,” it said.
Second Generation bio-ethanol technology uses ligno-cellulosic biomass (agri-residue) as feedstock. Farming community is expected to be benefited from additional revenues from agri-waste, the engineering company which uses its in-house technology, said.
2G bio-ethanol also helps reduce dependency on the imported crude oil, thereby saving foreign exchange.
Besides ethanol, Praj also constructs brewery plants, wastewater treatment systems and bio-products.