Andhra Pradesh Rs 2.6 Billion (bn) Ethanol Plant Launched At Kovur SEZ

06 Mar 2026 CW Team

The Gayatri Renewable Energy ethanol plant project began with the laying of a foundation stone at the IFFCO Kisan Special Economic Zone near Regadichilaka village in Kodavalur mandal in Nellore.

The unit is being developed with an investment of Rs 2.6 billion (bn) and is presented as a long-awaited development for farmers who had given land nearly 30 years ago for the SEZ.

Nellore MP Vemireddy Prabhakar Reddy laid the foundation stone in a ceremony attended by Kovur MLA Vemireddy Prasanthi Reddy, Rajya Sabha MP Beeda Masthan Rao and MLC Beeda Ravichandra, who jointly unveiled a commemorative plaque at the site. Officials present indicated that the project had been pursued through sustained engagement with IFFCO leadership in New Delhi and local representatives framed the development as the realisation of a three-decade-old promise to bring industries and jobs to the constituency.

The plant is expected to provide direct employment to around 200 people and to create indirect opportunities for between 500 and 700 individuals. Annual feedstock requirements were given as 0.15 million tonnes (mn t) and are expected to support farmers in the surrounding region. Project promoters indicated that local procurement would be prioritised where feasible to link agriculture with industry.

Local political leaders acknowledged the roles of the State leadership in facilitating the investment and said ministerial support had been instrumental in bringing the unit to the SEZ. Calls were made for the establishment of a Skill Development Centre under the VPR Foundation to prepare local youth for jobs in upcoming industries and to ensure that benefits reach those who had ceded land for the zone. Officials also positioned the plant as part of a broader strategy to increase ethanol blending and to add value to agricultural output, with ethanol to be blended up to 20 per cent with crude oil.

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