Indian Economy News

World's first bamboo ethanol plant in Assam aims to bring 30,000 farmers in sourcing net

  • IBEF
  • February 18, 2026

India's biofuel drive has just received a significant boost with the inauguration of the world's first second-generation ethanol production facility based on bamboo in Assam. This facility, developed by Assam Bio Ethanol Private Limited (ABEPL), is a non-food crop-based ethanol production facility that aims to provide a significant boost to rural livelihoods and support a more environmentally friendly energy sector. This facility spans 43 acres in Golaghat in Assam's Assam valley and is a Rs. 4,930 crore (US$ 543.71 million) venture that is in the stabilization phase and will soon enter production.
Once in production, this facility is expected to bring over 30,000 farmers into its supply chain over the next three years, provide them with additional income opportunities, and encourage bamboo cultivation in states across northeastern India. This facility will require about five lakh metric tonnes of bamboo every year for production and will also produce co-products like furfural, acetic acid, liquid carbon dioxide, and green power. So far, this facility has already enlisted over 4,200 farmers and has directly paid Rs. 2.4 crore (US$ 2.64 lakh) to them in a bid to encourage more cultivation across a 300-kilometre radius. This facility is expected to inject about Rs. 200 crore (US$ 22.06 million) into the local economy in terms of zero-waste production and support India's ethanol blending and carbon-neutral objectives.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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