Avantha Group, promoted by $4-billion Gautam Thapar group, has entered into a partnership with Finland-based Chempolis Ltd to produce ethanol from paddy plants and banana stems.

The pact was signed by Avantha Group’s research wing Avantha Centre for Industrial Research & Development (ACRID).

ACRID will seek investments to set up plants in major biomass growing states. It is in talks with the Punjab government for converting paddy plants into ethanol along with other byproducts.

“We are in talks with the government of Punjab exploring possibilities of converting paddy plants into ethanol which has around 31-32 per cent of recovery along with its byproducts. While ethanol recovery from paddy plants along stands at 24.5 per cent, others include byproducts,” said Rajeev Vederah, chairman, ACRID.