IREDA has sanctioned a term loan of Rs 180 crore to Jagatjit Industries Ltd, which the company will use to construct an ethanol facility in Punjab.

Jagatjit Industries said that the total project investment is approximately Rs 210 crore.

"The company has received a sanction of term loan of Rs 180 crore from Indian Renewable Energy Development Agency (IREDA). This capital is earmarked for the establishment of a...200 kilo litre per day grain-based ethanol distillery plant, over 25 acres in Hamira, Punjab," a statement said.

The primary objective of this facility is production of ethanol for blending with petroleum, thereby contributing to the biofuel sector, the company said adding it aims to make the plant operational by fourth quarter of FY2024-25.