State's First Ethanol Plant is taking Shape at Kokodi in Kondagaon

• 24 Feb 2023

Why In News?

According to the information given by the Chhattisgarh Public Relations Department on February 23, 2023, the state's first ethanol plant based on maize processing at Kokodi in Kondagaon district is now taking concrete shape. The maize processing plant has been targeted to be completed by June 2023.

Key points

• According to the information, this first plant is being set up in the field of cooperatives in Kondagaon district with the help of the state government at a cost of Rs 140 crore. Kondagaon district in Chhattisgarh state has the highest production of maize.
• This plant will prove beneficial not only in Kondagaon but also for the farmers of Chhattisgarh. The maize processing plant being built on 14 acres of government land in village Kokodi will be operated by Maa Danteshwari Maize Processing and Marketing Cooperative Society.
• The plant will process 200 metric tons of maize per day, which will produce 80 thousand liters of ethanol. With the installation of this plant, a new environment will be created for private investors to set up other ancillary industries.
• Ethanol produced at the plant will be sold to Indian Oil Corporation, which will be sold mixed with petrol. This will also save foreign exchange as well as farmers will get a fair price for maize.
• The maize processing plant will open the door to economic prosperity of the maize producing farmers of the district. This will directly benefit more than 45 thousand farmers. Along with this, maize of maize producing farmers of other nearby districts will be processed. More than 200 people of the area will get direct employment in the maize processing plant.
• Maize production in Kondagaon district has received a major boost in both kharif and rabi seasons in the last three-four years. Encouraged by the establishment of the plant, farmers are increasing the area of maize year after year. At present, 3 lakh 48 thousand 127 metric tonnes of maize are produced every year in Kondagaon district.
• The processing plant for ethanol production from maize was found to be fizzy by the State Project Finance Committee. Farmers of about Rs 140 crore in the construction of this plant being built at a cost have contributed a share capital of Rs 7.06 crore. Similarly, Rs 21.19 crore has been given by the Mandi Board, Rs by the state government 35.32 crore from the cooperative society's own fund and Rs 2.10 crore. The remaining Rs 75 crore has been raised through bank loans.
• In Kondagaon district, 47 procurement centres have been set up for procurement of maize at support price. Maize is produced on a large scale in Kondagaon Makdi, Farasgaon, Baderajpur development block of the district. The work of maize procurement is being done by Chhattisgarh Civil Supplies Corporation.
• Maize producing farmers are also being given input subsidy at the rate of Rs 9000 per acre by the state government under the Rajiv Gandhi Kisan Nyay Yojana.
• One lakh 24 thousand 188 tonnes of maize are produced in Kharif season and 2 lakh 23 thousand 929 tonnes in Rabi season in Kondagaon district. About 65 thousand farmers of the district are associated with maize production.
• It is worth mentioning that in the industry policy of Chhattisgarh government, establishment of agriculture and forest produce based industries has been kept in special priority category.