The proposed ethanol plant at Panipat Cooperative Sugar Mill is one of Haryana’s most significant biofuel projects and is expected to strengthen both the agricultural and renewable-energy sectors. The project, estimated at around ₹208 crore, will have a production capacity of 90 KLPD (90,000 litres of ethanol per day). In May 2026, the sugar mill board approved the tender process, allowing the project to move into the implementation phase.
The ethanol plant will be integrated with the existing Panipat Cooperative Sugar Mill, which is one of Haryana’s largest cooperative sugar mills. The mill currently processes large quantities of sugarcane and produces sugar, molasses, and electricity. By converting molasses and other sugarcane by-products into ethanol, the plant will help create an additional revenue stream for the mill and local farmers.
Ethanol is primarily used for blending with petrol under the Government of India’s Ethanol Blended Petrol (EBP) Programme. Increasing ethanol production helps reduce India’s dependence on imported crude oil, lowers greenhouse-gas emissions, and supports cleaner transportation fuels. The project also aligns with the national target of expanding biofuel production and increasing ethanol blending in fuel.
The project is expected to benefit thousands of sugarcane farmers in and around Panipat by creating a more stable demand for sugarcane and its by-products. It could also generate direct and indirect employment opportunities in plant operations, logistics, transportation, and maintenance. Officials believe the ethanol facility will enhance the long-term financial sustainability of the cooperative sugar mill while contributing to Haryana’s green-energy transition.
Once operational, the Panipat ethanol plant is expected to become the largest ethanol production facility associated with a cooperative sugar mill in Haryana and a key contributor to the state’s biofuel economy.
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