The ethanol industry in Bihar is reaching a breaking point as local manufacturing units struggle to stay afloat. Strict government limits on how much fuel these plants are allowed to supply have forced many facilities to run at only a fraction of their intended capacity.
In response to this growing crisis, a high-level delegation from the Bihar Ethanol Association met with the state’s Industries Minister, Dilip Jaiswal. The group called for urgent government intervention, warning that without an increase in these supply quotas, the massive investments made in Bihar’s green energy sector could be lost.
The delegation included CA Kunal Kishore, secretary general of the Bihar Ethanol Association, founder of InvestAid India and co-founder of Karekeba Ventures. The group was led by Dr Dilip Patel, chairman of Patel Group of Industries, and Ajay Singh, chairman of Bharat Plus Group of Companies. Other members present were Ramashankar Prasad, director of Westwell Biorefineries; Dhirendra Kumar, director of Eastern India Biofuels Pvt Ltd; Kaushal Kishor Sharma, chairman of BK Builders Pvt Ltd; and Rakesh Ranjan, director of Muzaffarpur Bio Fuels Pvt Ltd.
During the meeting, the delegation outlined several urgent issues affecting ethanol producers in Bihar. These included the need for effective implementation of the Offtake Agreement and the restoration of full ethanol allocation for plants operating in the state. The representatives said that addressing these concerns is essential to ensure smooth operations, retain investor confidence and support the long-term development of the ethanol industry in Bihar.
Industry members said that lower-than-required ethanol offtake has forced many plants to operate far below their installed capacity, creating financial pressure and raising fears of possible shutdowns.
The industries minister acknowledged the concerns raised by the delegation and assured them that the matter would be taken up with the relevant authorities at the central government level. He said the state government would pursue follow-up action to address the difficulties being faced by ethanol manufacturers.
Speaking recently on the issue, Jaiswal said ethanol producers in Bihar are under serious strain due to low supply allocation. He said several plants are close to shutting down and warned that closures would directly affect employment in the state.
The minister added that the Bihar government is exploring steps to increase ethanol use and ensure the continued operation of existing plants. He said he plans to visit New Delhi soon to discuss the concerns of ethanol producers with the concerned central government departments.
