Centre ready to remove ethanol procurement cap in Bihar, says industries minister
Bihar gets a major boost as the Centre removes ethanol procurement caps, ensuring full offtake by oil companies. This will revive plant operations, lift maize demand, and support farmer incomes, while strengthening India’s ethanol blending push and accelerating the state’s industrial growth momentum.
The central government has agreed to remove the capping on ethanol procurement from grain-based plants in Bihar, ensuring that oil companies buy the entire quantity produced in the state, industries minister Dilip Kumar Jaiswal said here on Monday.
Talking to media persons, Jaiswal said that the Centre would soon issue directions to oil marketing companies to ramp up purchases from Bihar units. “The capping will end shortly. The state government’s request has been accepted and orders are expected in the next one or two months,” he said.
Bihar currently has 12 grain-based ethanol plants with a combined installed capacity of about 70 crore litres per year. For the past year, however, oil companies had been lifting only around 50% of the output, forcing plants to slash production by half and shut operations for 15 days every month to control costs.
The move is expected to provide much-needed relief to the industry and boost farmer incomes through higher demand for maize and other feedstocks.
Jaiswal also announced stricter action against banks that fail to extend loans in proportion to their deposits in the state. “Any bank not maintaining the required credit-deposit ratio will face government action,” he warned.
He said that the government has directed NABARD to disburse ₹4,600 crore in loans to entrepreneurs this year — a sharp jump from ₹2,500 crore last year and just ₹1,300 crore in 2024. The increased lending is part of a broader push to support small and medium enterprises, especially in rural and agri-based sectors.
The minister used the occasion to highlight the department’s aggressive industrial roadmap under the “Samriddh Udyog – Sashakt Bihar” vision for 2025-2030. The state has set a five-year target of attracting ₹50 lakh crore in investment and generating one crore jobs. In the current financial year 2025-26 alone, 747 investment proposals worth over ₹17,217 crore have already been received, he said.
Jaiswal said that the industries department is vigorously pursuing land acquisition in different parts of the state to create new industrial areas and parks. “We are building a strong land bank so that investors get ready infrastructure without delay,” he said, referring to the department’s ongoing drive to notify and develop fresh industrial zones across districts. This includes acquisition of land for expansion of existing parks as well as setting up of 13 new industrial areas, aimed at meeting the surging demand from both domestic and global investors.
Highlighting major industrial projects in the pipeline, Jaiswal pointed to several flagship initiatives that are being fast-tracked. These include the development of an integrated industrial township, the rollout of the Bihar Semiconductor Policy 2026 to position the state as an electronics manufacturing hub, and the full implementation of the Bihar Industrial Investment Promotion Package (BIIPP) 2025. “Projects like the Amritsar Kolkata Industrial Corridor and Bihar Mega Cluster are also progressing steadily. Along with policy stability and better infrastructure, these will help Bihar emerge as a preferred investment destination in eastern India,” the minister asserted.
The government has been actively inviting investors through roadshows and high-level meetings in Thailand, Dubai, Kolkata, and other cities to showcase opportunities in electronics, food processing, textiles, logistics and green energy. Jaiswal described the overall momentum as a clear sign that Bihar is steadily positioning itself as an emerging industrial powerhouse, backed by consistent policy support and on-ground execution.
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Source : MSN
