For giving a thrust to the Ethanol Blending Program (EBP) announced by the Ministry of Petroleum and Natural Gas (MoPNG), Hindustan Petroleum Corporation Limited (HPCL) was looking for a backward integration opportunity to reduce its dependence for ethanol.
In December 2007 Government of Bihar (GoB) invited Request for Qualification (RFQ) for 15 closed sugar mills owned by Bihar State Sugarcane Corporation Limited, 8 of them to be operated as sugar mills. HPCL participated in RFQ for 4 sugar mills. HPCL emerged as the highest bidder for two sugar mills one at Sugauli in East Champaran and another at Lauriya West Champaran Districts.
The Asset Transfer and long term Lease Agreement was signed between HPCL and Bihar State Sugar Corporation Limited, GoB on 18th January, 2009 and GoB started handing over the sites (assets and farmland) for possession from 25th Feb, 2009 onwards.
Subsequently a wholly owned subsidiary company of HPCL under the name 'HPCL Biofuels Limited' (HBL) was incorporated on 16th October, 2009 for handling the Integrated Sugar Ethanol Co-gen Plants at Sugauli & Lauriya.
As the then existing machinery were in a dilapidated condition and very outdated, they were sold a scrap and a modern state-of-the-art plants were set up with
1.
Crushing Capacity of 3500 TCPD.
2.
Distillery plant of capacity 60 KLPD.
3.
Co-gen plant of 20 MW.
The two plants have been commissioned in December, 2011.
