MUMBAI: Shree Renuka Sugars is all set to enter into a maiden venture with HPCL (Hindustan Petroleum Corporation Ltd) in Maharashtra. The proposed venture is the first such tie-up between a petroleum company and a sugar company.

Mr. Narendra Murkumbi, managing director, Renuka Sugars, says that this is a renewal of the 2008 MOU (memorandum of understanding) with HPCL. Renuka is expected to hold 76 percent in the joint venture and the rest is being held by the state owned HPCL.

The integrated sugar cum ethanol plant is expected to produce up to 50 per cent ethanol and the rest sugar. Renuka Sugars tops the latest round of bidding and offers to supply 120 million litres of ethanol to oil marketing companies for blending it with petrol. The entire sugar industry has offered to supply nearly 1000 million litres of ethanol which exceeds the amount required of 860 million litres.

HPCL is also reviving two sick sugar mills in Bihar and is exploring similar opportunities in South India.