A deal has been signed between the state run Hindustan Petroleum Corp Ltd (HPCL) private enterprise Shree Renuka Sugars Ltd, to construct a sugar plant with the facilities to produce ethanol in the state of Maharashtra..

The stock was informed by the companies through separate statements that they have entered into a JV to set up the unit.

Managing Director, Narendra Murukumbi annonced,“It would be an integrated sugar and ethanol plant where the ethanol capacity would be 240 kilo litres per day and a co-generation power capacity of 30 mega watts.” He further informed that the by-product would be sugar whereas ethanol would be the main product.

The companies have entered into a JV due to high demand of ethanol, though the final details regarding the JV are still to be worked out.