Shree Renuka Sugars will invest Rs 450 crore to expand its ethanol capacity, the company said on Saturday.
In a regulatory filing, the company informed that its board has approved expanding production capacity by 430-kilo litre per day to 1,400-kilo litre per day.
In February, the board had approved a capacity expansion of ethanol from 720-kilo litre per day to 970-kilo litre per day.
"Considering the huge untapped demand for ethanol due to the policies of Government of India on ethanol blending, the Board of Directors of the company approved further capacity expansion for ethanol production from 970-kilo litre per day to 1,400-kilo litre per day," the filing said.
The investment required for this capacity expansion is Rs 450 crore, it said. The capacity addition would be completed by October 2022.
"The government of India has mandated 20% ethanol blending in fuel by 2025 against a current blending of 7.79 per cent. Considering this, the company sees a huge untapped demand for ethanol for the ethanol blending programme of the Government of India which can be of benefit to the company in the future," Renuka Sugars said.
The company is one of the leading sugar companies in India.