News Brief

Rosneft-Backed Nayara Energy To Enter Ethanol Production With Investment Of Rs 600 Crores

Swarajya Staff

May 15, 2024, 02:52 PM | Updated 03:01 PM IST

Nayara Energy has 6300-plus petrol pumps spread across the country and over 1200 petrol pumps in various stages of commissioning.
Nayara Energy has 6300-plus petrol pumps spread across the country and over 1200 petrol pumps in various stages of commissioning.

Rosneft-backed Nayara Energy has announced to invest Rs 600 crore to set up two ethanol plants in India.

Each plant will have a production capacity of 200 kilo litres per day (KLPD) and will be set up in Andhra Pradesh's Naidupeta and Balaghat, Madhya Pradesh.

The company has identified and purchased land in both states and aims to have the plants operational by 2026, utilising broken rice and maize as feedstock.

Alessandro des Dorides, Chief Executive Officer, Nayara Energy, said, “The establishment of ethanol facilities will significantly enhance our ethanol supply reliability, playing a crucial role in meeting the Indian government’s 20 per cent blending target by the end of fiscal year 2025-2026.”

The move, will help the oil-refining to fuel-retailing major achieve downward integration within the energy sector, the company said in a statement. Nayara Energy plans to expand its ethanol production capacity to approximately 1,000 KLPD by increasing the number of plants to five in the long term.

Nayara Energy operates as a downstream energy and petrochemical company on an international scale, with a robust presence across the hydrocarbon value chain, from refining to retail.

In August 2017, the company was acquired by international investors Rosneft and an investment consortium comprising global commodity trading firm Trafigura and UCP Investment Group.

The company owns and operates India’s second-largest single-site refinery at Vadinar, Gujarat, with a current capacity of 20 MMTPA. This refinery ranks among the world’s most modern and complex, with a complexity index of 11.8, which is among the highest globally.

Nayara Energy’s fuel retail network consists of over 6,300 outlets across India and is the fastest-growing private retailer in the energy sector.


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