Tata Chemicals to write off bioethanol pilot projects

Tata Chemicals Limited (TCL), the world’s second largest producer of salt and soda ash, announced that it will write off its investments in biofuels and farm produce distribution, which it undertook last year. One of the projects is a 30,000-liter-per-day bioethanol plant, which was supposed to use sweet sorghum as feedstock, and sweet sorghum bagasse as fuel for power generation. Ensuring continuous supply of the feedstock was a problem. “We have taken a write-off on the civil structure and may move it to where feedstock is not a constraint,” said R. Mukundan, managing director of TCL. Mukundan said that the company is considering several options including leasing it out, selling or relocating it outside the country. (March 9, 2012)