Northeast India is stepping into a greener future, as two local bamboo species are now fueling the world’s largest bamboo-based ethanol plant. Prime Minister Narendra Modi inaugurated this significant facility in Golaghat district, eastern Assam, on September 14.
Officials from Numaligarh Refinery (NRL) are confident in a consistent supply of Balco (Bambusa balcooa) and Tulda (Bambusa tulda) bamboo varieties. These species, sourced from at least three of the eight northeastern states, are crucial for the optimal operation of the new ₹5,000-crore bioethanol plant.
The bioethanol plant is strategically located near NRL’s existing petroleum refinery, which is undergoing a major expansion to triple its capacity from 3 million to 9 million metric tonnes per annum. Oil India Limited (OIL) holds a substantial 70% stake in the refinery, situated approximately 260 km east of Guwahati.
Beyond producing 48,900 metric tonnes of ethanol annually, this innovative plant is also designed to yield 11,000 tonnes of acetic acid, 19,000 tonnes of furfural from raw bamboo, and 31,000 metric tonnes of food-grade liquid carbon dioxide each year.
Building a Robust Bamboo Supply Chain
Ranjit Rath, NRL Chairman and also Chairman and Managing Director of OIL, highlighted the importance of a well-established supply chain. He noted that Arunachal Pradesh, Assam, and Meghalaya collectively boast over 10,000 square kilometers of bamboo cover. “We have created a robust network of farmers and local entrepreneurs operating bamboo-chipping units within a 300-km radius of the bioethanol facility to ensure a steady supply of feedstock,” Rath stated during the refinery’s 32nd annual general meeting on September 16, 2025.
Bhaskar Jyoti Phukan, NRL’s Managing Director, elaborated on the choice of bamboo species. He explained that Balco and Tulda are highly favored due to their superior cellulose content when harvested at three-and-a-half years old. This specific characteristic makes them ideal for efficiently producing the high concentration of bioethanol required for fuel.
Research confirms the suitability of these varieties, with Balco and Tulda bamboos exhibiting an alpha-cellulose content ranging from 42.7% to 60.98%.
The development of the bamboo supply chain was a proactive measure taken before the plant’s completion. NRL authorities played a key role in distributing free saplings to farmers, particularly in Assam. “While each sapling typically costs around ₹27 in the market, we provided them to farmers at no charge, having grown them through tissue culture with the help of start-ups,” Phukan added.
Farmers supplying bamboo poles to the plant receive ₹65-70 per bamboo pole and have the flexibility to supply either directly or through the strategically located bamboo-chipping units.
In other financial news, Dr. Rath reported that NRL’s net worth reached an impressive ₹16,069 crore by March 2025, marking a 25% increase from March 2024. Revenue from operations also saw a 6% growth, rising from ₹23,731 crore to ₹25,147 crore during the same period.
However, profit after tax experienced a decline, falling from ₹2,160 crore in the 2023-04 financial year to ₹1,608 crore in the latest fiscal year. Rath attributed this “moderation in profitability” primarily to a tighter spread between product and crude oil prices in the global market, which resulted in a reduction of the gross refining margin from $13.17 to $5.14 per barrel.