Indias first refineries for ethanol production from bamboo, with daily capacity of 30,000 litre, will be built in Gadchiroli and Nandurbar districts.
An agreement of the project was signed on Friday in Hyderabad betweenNagarjuna GroupandLodga Bamboo Industries ofLatur district.
Those privy to the development said that the Union Government has committed to blend 20% ethanol with petrol by 2025, eventually creating a huge opportunity for using bamboo-based ethanol. India imports about Rs 8.5 lakh crore worth of diesel and petrol.
As many as 60,000 tonne bamboo grown over 1,500 acres would be needed annually to meet the raw material requirements of the ethanol plant.