Investor Presentaiton
15
National Policy on Biofuels 2018: Expected Benefits
BCL Industries Limited
(Formerly known as BCL Industries &
Infrastructures Ltd.)
Decreasing Import Dependency: One crore litres of E10 saves INR 28 crore in foreign exchange. India saved forex worth INR 40,000 Mn in financial
year 2017-18 due to the ethanol blending programme. The Government of India aims to increase these savings to INR 120,000 Mn per annum over
the next four years.
Cleaner Environment by reducing CO2 emission: One crore litres of E-10 saves around 20,000 ton of CO2 emissions. For the ethanol supply year for
the year 2017-18, there will be lesser emissions of CO2 to the tune of 30 lakh ton. By reducing crop burning & conversion of agricultural
residues/wastes to biofuels there will be further reduction in Green House Gas emissions.
Increasing farmer's income by MSP: The announcement of higher MSPs to an average tune of 1.5 times coupled with the levy of heavy import duty
on oil shows the Government of India's focus on increasing palm oilseed cultivation so that the country's dependence on imports of edible oil could
be reduced significantly and domestic production glory is reinstated. This will continue to encourage BCL to significantly improve production in the
coming years.
Supporting the sugar industry and reducing foreign exchange outflow: Through boosting the domestic ethanol production, the Government is taking
leaps towards a cleaner India and the world. It is not only decreasing the forex expenditure through domestic ethanol production but is also
attempting to reduce the emission of carbon dioxide through Ethanol blending, decreasing import dependency of crude oil for petrol and diesel,
increasing farmers' income by means of MSP and supporting the sugar industry.
While implementing the policy, the oil marketing companies have floated the tender for the purchase of 3,290 Mn litres of Ethanol on
10th August, 2018 in which our Company is also participating to supply Ethanol from our Bathinda, Punjab plant. The realisation derived will be
higher than its current average realisation per litre of ENA.
Based on the above, BCL has already started the process of conversion of its part capacity of 125 KLPD at the Bathinda plant to Ethanol and the
order has been placed to Praj Industries Limited. BCL is confident to bag the tender and further consolidating its position in the Ethanol Industry
through its Kharagpur plant under its subsidiary Svaksha Distillery limited, which shall come into production from September 2019.View entire presentation