A three-phase project in Chhata, Mathura, will begin with a 120 KLPD ethanol facility using B-Heavy molasses, followed by planned sugar production and co-generation.
Uttar Pradesh is planning a Rs 200–250 crore integrated plant in Chhata, Mathura, with ethanol production forming the first phase of a development that will later add a sugar mill and co-generation facility.
Chief Minister Yogi Adityanath is expected to lay the foundation stone for the project, according to State Sugarcane Development and Sugar Mills Minister Chaudhary Laxmi Narayan, who outlined the plan at a press conference at the Collectorate auditorium on Saturday.
Ethanol production to start the project
The first phase will establish a 120 KLPD ethanol plant using B-Heavy sugarcane molasses as its primary feedstock.
The plant is planned to operate for 11 months of the year and produce approximately 36.9 million litres of ethanol. During the off-season, the facility will use corn and rice for ethanol production, according to the minister.
The announcement does not specify how much of the annual production would come from each feedstock or provide details on feedstock procurement and storage.
Sugar mill planned as second phase
The second phase will involve establishing a sugar mill as sugarcane production increases in the surrounding region.
The state government plans to encourage farmers to expand sugarcane cultivation and provide improved seeds as part of the development strategy.
No sugarcane crushing capacity has been provided for the proposed mill.
Co-generation forms the third phase
A co-generation plant is planned as the project’s third phase, enabling the integrated facility to generate electricity.
The announcement does not provide the planned electricity-generation capacity or expected power output.
The three-phase structure would therefore bring together ethanol production, sugar processing and power generation within the same development, although the latter two components remain planned future phases.
Project follows six unsuccessful tender attempts
The proposal comes after the Uttar Pradesh government attempted to restart the Chhata Sugar Mill through a tender process.
According to Chaudhary Laxmi Narayan, the government issued tenders six times, but received no applicants. The state subsequently developed plans for the integrated project under a partnership model.
The government says the three-phase plant is intended to be completed within two years.
Details of the prospective partner, financing arrangements, construction contractor and investment allocation between the three phases were not provided in the announcement.
Government links project to jobs and sugarcane cultivation
The minister said the project would create employment for thousands of young people in and around Mathura and provide farmers with fair prices for their crops.
The government also intends to support increased sugarcane acreage in the region through improved seeds and farmer outreach. These employment and farmer-income figures are stated objectives rather than independently verified projections.
Chaudhary Laxmi Narayan also appealed to ex-servicemen protesting at the gate of the Chhata Sugar Mill to end their protest and cooperate with the proposed development.
Why It Matters
The Chhata proposal would combine ethanol, sugar processing and electricity generation in a single phased development rather than pursuing the sugar mill as a standalone restart.
For the ethanol sector, the first phase is the most clearly defined part of the project, with a stated 120 KLPD capacity and planned use of B-Heavy molasses alongside corn and rice during the off-season.
The proposed multi-feedstock operation could allow the ethanol facility to maintain production beyond the sugarcane processing period. However, the project’s commercial structure and feedstock economics have not yet been disclosed.
If the project proceeds as announced, it would also create an additional processing outlet for agricultural feedstocks in the Mathura region while establishing the basis for later sugar production and co-generation.
What Happens Next
The next announced milestone is the proposed foundation-stone ceremony by Chief Minister Yogi Adityanath.
The government has stated that the three-phase development is targeted for completion within two years through a partnership model. Further details on the project partner, financing, construction schedule and implementation of the second and third phases have not been provided.
Read more: First-ever commercial facility of ethanol-to-Jet fuel begins operations
