Nayara Energy Ltd has announced an investment of ₹600 crore to establish two ethanol plants in Andhra Pradesh and Madhya Pradesh, each with a production capacity of 200 kilolitres per day.

The move, in line with the government's 2025 ethanol-blending target, will help the oil-refining to fuel-retailing major achieve vertical integration, the company said in a statement. Land has already been acquired for the proposed facilities in both states, it added.

“Establishment of ethanol facilities will significantly enhance Nayara Energy's ethanol supply reliability, playing a crucial role in meeting the Indian government's 20% blending target by the end of fiscal year 2025-2026," Alessandro des Dorides, chief executive officer, Nayara Energy, said.

"This strategic move highlights our dedication to sustainability, regulatory compliance, and long-term growth in the dynamic energy sector. By expanding the presence in the ethanol segment, we aim to actively contribute to India's renewable energy goals and fostering a greener future," he added.

"As a major downstream player, delivering 8% of India's refining output, Nayara Energy fuels the country's dreams and aspirations, contributing significantly towards India's energy security," the company said.