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LOK SABHA
UNSTARRED QUESTION No.3300
TO BE ANSWERED ON 12thMarch, 2026
STATUS OF BPCL ETHANOL BIO-REFINERY PROJECT IN ODISHA
3300. SHRI PRADEEP PUROHIT:
पे(cid:7069)ोिलयम और (cid:7079)ाकृितक गैस म(cid:7074)ं ी
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
पे(cid:7069)ोिलयम और (cid:7079)ाकृितक गैस म(cid:7074)ं ालय म(cid:7286) रा(cid:6996)य म(cid:7074)ं ी
((cid:7088)ी 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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