BCL Industries Ltd. informed the bourses on Tuesday that its ethanol-manufacturing facilities may witness disruptions as the Food Corporation of India (FCI) has suspended supplies of surplus rice for the same purpose.
NSE
“We await a policy from their (FCI’s) end regarding the resumption of supplies,” the company said in a notification to stock exchanges on Tuesday.
BCL Industries informed that the company is currently continuing to produce ENA (extra neutral alcohol) from broken rice and maize in both its Punjab and West Bengal units.
The company is also able to produce ethanol in Bathinda from the FCI rice that it had bought prior to the suspension. But, it expected a temporary disruption in the production of ethanol while it awaits a policy from FCI regarding the resumption of supply of rice.
BCL is one of the largest grain-based manufacturers of ENA and ethanol in India. On Monday, the company announced that it has successfully commissioned a 200 kilolitres per day (KLPD) ethanol-dedicated brownfield expansion at Bhatinda, Punjab, taking the plant’s distillery capacity to 400 KLPD.
BCL Industries also informed that it has commissioned a 10 MW power plant that will run on paddy straw, for which the company has already sourced paddy straw stock required until December 2023, along with contracts for paddy straw already in place for the next year. The company said that the capex outlay for this expansion was Rs 220 crore.
Shares of BCL Industries are trading 0.4 percent lower at Rs 479.10.