It's great news for investment and power-starved Bihar. Tamil Nadu-based Indian Gasohol Ltd has proposed to set up 10 mega ethanol plants across north and south Bihar, investing a whopping Rs 13,557 crore. The projects were cleared by the state Cabinet.

According to the proposal, the company will set up cane crushing units of 25,000 TCD (tonne crushed per day) capacity at 10 places. The company will not venture into production of sugar, but will use cane juice to produce ethanol in its distilleries and also generate power through its co-generation units. It proposes to generate 2000 MW of power, of which 70 per cent will be surplus and will be utilised by the state government for rural electrification. The state government has assured to purchase the surplus 1450 MW from the company.

Apart from providing electricity to the state, these mega units will generate plenty of employment. “The units will generate 50,000 direct and two lakh indirect jobs,” said Cabinet Secretary Amir Subhanni. The units will be set up in Buxar, Rohtas, Aurangabad, Gaya, Araria, Katihar, Bhagalpur and Nalanda.