Oil India and its subsidiary Numaligarh Refinery Ltd (NRL) would make the consolidated investment. The latter would be in charge of establishing the plant.

With the recent formation of the Global Biofuels Alliance and India's push for biofuels, state-run Oil India is aiming to invest roughly Rs 8,000 crore in the 2G (second generation) ethanol industry.

Speaking to the media, Oil India CMD Ranjit Rath said that overall, the company is investing ₹25,000 crore to achieve net zero by 2040, in areas including 2G ethanol, green hydrogen, compressed biogas (CBG) and solar power.

“In 2G ethanol space, we are looking at an investment of about ₹8,000 crore," he said, adding that the company has also received a mandate for setting up about 25 CBG plants.