The Assam Bio Ethanol Private Limited plant at Numaligarh in Golaghat district is the world’s first
commercial second-generation (2G) bioethanol plant using bamboo as feedstock. It was inaugurated by the
Prime Minister in September 2024 and is now entering full-scale production after stabilisation.

Why is it Important?

• Produces second-generation (2G) ethanol instead of first-generation ethanol derived from food crops like sugarcane and maize.
• Aligns with India’s Ethanol Blended Petrol Programme under the National Biofuel Policy, 2018 (amended 2022).
• Supports India’s target of 20% ethanol blending to reduce crude oil imports and carbon emissions.

Key Features

• Investment: ₹4,930 crore
• Installed ethanol capacity: 49,000 tonnes per annum
• Green bamboo requirement: 5 lakh metric tonnes per annum
• Additional products:
  • Furfural – 19,000 tonnes/year
  • Acetic acid – 11,000 tonnes/year
  • Liquid carbon dioxide – 32,000 tonnes/year
  • 25 MW green power generation
• Ethanol purity achieved: 99.7% (above standard 99.5%)

Navratna Status of Numaligarh Refinery Limited (NRL)

NRL was granted Navratna Status (Category-I Miniratna CPSE) on 1 December 2025,
as announced by Union Petroleum and Natural Gas Minister Hardeep Singh Puri.
This enhances the company’s financial and operational autonomy.

Historical Background

• Established on 22 April 1993 under the provisions of the Assam Accord, 1985.
• Known as the “Accord Refinery” for addressing regional aspirations after the Assam Movement.
• 3 MMTPA refinery dedicated to the nation on 9 July 1999 by former PM Atal Bihari Vajpayee.
• Commercial production began in October 2000.
• Ownership: Oil India Ltd (69.63%), Government of Assam (26%), Engineers India Ltd (4.37%).

What is Navratna Status?

Under Department of Public Enterprises guidelines, Navratna CPSEs gain autonomy to:

• Invest up to ₹1,000 crore or 15% of net worth without prior government approval.
• Enter joint ventures and expand globally.
• Strengthen competitiveness in strategic sectors like energy security.

Socio-Economic Impact

• Engages nearly 30,000 farmers across Assam and neighbouring northeastern states.
• Requires 12,500 hectares of bamboo plantation with 60 lakh saplings.
• Utilises barren and non-crop land, protecting food security.
• Estimated ₹200 crore annual boost to the rural economy.
• Operates as a zero-waste facility ensuring sustainable bamboo utilisation.

International Collaboration

The plant is promoted by Numaligarh Refinery Limited in partnership with
Fortum 3 BV (Finland) and Chempolis, showcasing global clean-energy cooperation.

Exam Hook (Prelims Practice)

With reference to Second-Generation Bioethanol, consider the following statements:

1. It uses non-food biomass such as agricultural residues or bamboo.
2. It supports the Ethanol Blended Petrol Programme under the National Biofuel Policy.
3. It increases pressure on food crops used for human consumption.

Which of the statements given above is/are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 only
(d) 1, 2 and 3

Answer: (a) 1 and 2 only

One-line wrap: The Numaligarh bamboo ethanol plant strengthens India’s clean energy goals while empowering
rural livelihoods in the Northeast.