Nayara Energy, backed by Russian energy giant Rosneft, is set to invest ₹600 crore in establishing two ethanol production plants in India. These plants will be located in Naidupeta, Andhra Pradesh, and Balaghat, Madhya Pradesh. Each plant will have a daily production capacity of 200,000 kilolitres and is expected to be operational by 2026. The facilities will use broken rice and maize as feedstock. Prasad Panicker, Nayara's executive chairman, stated the company's long-term goal to operate five ethanol plants to support India's aim of achieving 20% ethanol blending by 2025.

Beyond ethanol, Nayara is significantly expanding its petrochemical and refining operations. At its Vadinar refinery in Gujarat, the company will launch a new polypropylene unit. Additionally, Nayara plans to invest ₹6,000 crore in a new petrochemical unit and ₹4,000 crore in modernizing the refinery, with all projects slated for completion by 2026. Nayara currently holds an 8% share in India's refining capacity and the domestic fuel retail market. It aims to expand its fuel retail network from 6,600 to 10,000 outlets within the next three to four years.

Panicker emphasized Nayara's commitment to diversifying its product portfolio and exploring sustainable aviation fuel (SAF). He noted the economic potential of SAF, driven by policy support, and revealed that the company is studying SAF production from ethanol and used cooking oil, with the possibility of integrating SAF production into its existing refinery operations.

Let us understand this News with QnA.

Q: What is Nayara Energy planning to do?  
A: Nayara Energy is planning to invest ₹600 crore to set up two ethanol manufacturing plants in India, aiming to enhance its renewable energy portfolio and support India's ethanol blending goals.

Q: Where will the new ethanol plants be located?  
A: The ethanol plants will be located in Naidupeta, Andhra Pradesh, and Balaghat, Madhya Pradesh, providing strategic locations to optimize production and distribution across India.

Q: What is the production capacity of each plant?  
A: Each ethanol plant will have a production capacity of 200,000 kilolitres per day, significantly contributing to India's ethanol supply and blending targets.

Q: What feedstock will the ethanol plants use?  
A: The ethanol plants will utilize broken rice and maize as feedstock, ensuring the use of sustainable and readily available agricultural resources.

Q: What is Nayara's long-term plan for ethanol production?  
A: Nayara Energy aims to eventually operate five ethanol plants, scaling up its renewable energy production to support India's 20% ethanol blending goal by 2025.

Q: Who is the executive chairman of Nayara Energy?  
A: Prasad Panicker is the executive chairman of Nayara Energy, leading the company in its expansion and investment initiatives.

Q: What is India's ethanol blending goal by 2025?  
A: India's goal is to achieve 20% ethanol blending by 2025, a target Nayara Energy is committed to supporting through its new ethanol plants.

Q: What refinery does Nayara Energy operate?  
A: Nayara Energy operates a 20-million-metric-tonne oil refinery in Vadinar, Gujarat, one of the most complex refineries in India.

Q: What new unit will Nayara launch at the Vadinar refinery?  
A: Nayara will launch a polypropylene unit at the Vadinar refinery, enhancing its petrochemical production capabilities.

Q: How much is Nayara investing in a petrochemical unit?  
A: Nayara Energy is investing ₹6,000 crore in a new petrochemical unit to diversify its product offerings and increase production capacity.

Q: What will be the annual capacity of the new petrochemical unit?  
A: The new petrochemical unit will have an annual production capacity of 450,000 tonnes, contributing significantly to Nayara's petrochemical market share.

Q: How much is Nayara investing in modernizing its refinery?  
A: Nayara Energy is investing ₹4,000 crore in modernizing its Vadinar refinery to enhance its longevity, reliability, and operational efficiency.

Q: When are these investments expected to be completed?  
A: These investments in ethanol plants, petrochemical units, and refinery modernization are planned to be completed by 2026.

Q: What share does Nayara hold in India's refining capacity?  
A: Nayara Energy holds an 8% share in India's refining capacity, making it a significant player in the country's energy sector.

Q: What share does Nayara hold in the domestic fuel retail market?  
A: Nayara Energy holds an 8% share in the domestic fuel retail market, reflecting its strong presence in fuel distribution.

Q: What share does Nayara hold in the petrochemical market?  
A: Nayara Energy holds a 7% share in India's petrochemical market, indicating its growing influence in the industry.

Q: How many fuel retail outlets does Nayara currently have?  
A: Nayara Energy currently operates 6,600 fuel retail outlets across India, serving a wide customer base.

Q: To how many outlets does Nayara plan to expand its fuel retail network?  
A: Nayara plans to expand its fuel retail network to 10,000 outlets within the next three to four years, enhancing its market reach.

Q: Over what timeframe does Nayara plan to expand its retail network?  
A: Nayara Energy aims to expand its fuel retail network from 6,600 to 10,000 outlets within three to four years.

Q: What is Nayara's approach to diversifying its product portfolio?  
A: Nayara Energy is committed to diversifying its product portfolio, focusing on expanding its petrochemical and renewable energy offerings to meet growing market demands.

Q: What clean fuel is Nayara exploring?  
A: Nayara Energy is exploring the potential of sustainable aviation fuel (SAF), which is economically attractive and likely to be driven by policy incentives.

Q: What makes SAF economically attractive?  
A: SAF is economically attractive due to potential policy incentives and its contribution to reducing carbon emissions in the aviation sector.

Q: What conditions are required for Nayara to enter the SAF field?  
A: Nayara Energy is interested in entering the SAF field, provided there is sufficient feedstock availability to ensure viable production.

Q: What is a feasible way to integrate SAF production?  
A: Integrating an SAF production unit with Nayara's existing refinery is considered feasible, though it depends on feedstock availability and economic viability.

Q: What technologies are available for producing SAF?  
A: Technologies for producing SAF from ethanol and used cooking oil are available, offering sustainable solutions for aviation fuel.

Q: What is Nayara currently doing regarding SAF?  
A: Nayara Energy is currently studying the sustainable aviation fuel (SAF) segment to develop effective strategies for entering the market.

Q: Who is backing Nayara Energy?  
A: Nayara Energy is backed by Russian energy giant Rosneft, providing strong financial and strategic support for its expansion plans.