Fertiliser cooperative Krishak Bharati Cooperative (KRIBHCO) will invest around Rs 1,100 crore to set up three ethanol manufacturing plants as part of its diversification plan. The three plants are being set up in Gujarat, Telangana and Andhra Pradesh with a capacity of 250 klpd.

The plants which will use maize and broken rice as feedstock are expected to be operational by end of the next year. The investment is being met through internal accruals and debt. At present, the ethanol blending with petrol is at 12 percent and the target is to reach 20 percent by 2025.

KRIBHCO has formed a 100 percent-owned special purpose vehicle (SPV) 'KRIBHCO Green Energy' for setting up these projects at Hazira in Gujarat, Nellore in Andhra Pradesh and Jagtial in Telangana. The SPV has received environment clearance (EC) as well as in-principle approval from the Department of Food and Public Distribution for interest subvention scheme for all the three projects.

For its operations, KRIBHCO has incorporated two wholly-owned subsidiaries, namely, KRIBHCO Agri Business (KABL) and KRIBHCO Green Energy.

The SPV has awarded the lump sum turn key (LSTK) contracts to Excel Engineers and Consultants.