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Uttar Pradesh is all set to emerge as the biggest ethanol producer in the country with around 100 operational distilleries in the ongoing 2023-24 fiscal year.

Additional chief secretary, sugarcane and excise, Sanjay Bhoosreddy said that as many as 85 distilleries are currently in operational stage in UP. Another 15 distilleries are scheduled to get operational in the next few months.

The 100 distilleries will be both sugarcane-based and dual mode' (based on cane as well as grain).

Moreover, the state government has also set a target of increasing the number of distilleries in the state to 140 within a span of next three years. The increase would primarily be driven by investments which the state received during the global investor summit which was organized earlier this year, Bhoosreddy said.

The state government, at the same time, planned to promote grain-based distilleries given the large stocks of paddy and wheat.

Records show that ethanol production in UP touched 134 crore litres in 2022-23 which was highest in the country.

This is expected to go up to 160 crore litres in 2023-24.

As a matter of fact, the state government has been pushing for the establishment of additional fuel storage facilities in two zones -- one between Gorakhpur-Basti-Azamgarh stretch and the other at the Meerut-Moradabad belt.

The projects are proposed to be executed in coordination with the ministry of railways and petroleum.

Bhoosreddy said that the state government was aggressively pursuing the proposal for establishment of the two facilities.

Uttar Pradesh, as a matter of fact, was ensuring around 12 per cent ethanol blending.

Industry sources said that the Oil Marketing Companies (OMCs) like HPCL were blending 11.63 per cent.

Records show that between December 2022 and October 23 contracts for 520 crore litres have been executed. Of this, around 240 crore litres have been lifted by the OMC till May 2023.