A senior RIL executive confirmed this development, but refused to divulge further details.
"We have major plans to enter into the bio-fuel sector and are looking at various options, including the production of bio-fuel from jatropha," the executive said.
It could not be confirmed as to how Reliance plans to produce ethanol in the arid region.
One of the most popular ways of producing ethanol is from molasses extracted from sugarcane.
"There has been some research on producing ethanol from jethropa. However, the tests have not been confirmed," said a scientist who has been working with the Gujarat state government for studying crops in Kutch.
Another view by the industry experts is that the sugar industry in South Gujarat is not
finding enough takers for the ethanol produced. So Reliance might enter into an agreement for buying ethanol from the sugarcane industry.
However, the rationale behind setting up the unit in Kutch could not be established. "We have sent a project proposal to the Centre and that is all we can say about the project," according to a senior RIL executive.
Reliance has been planning to set up a unit in Kutch and post-earthquake, the company was looking for a mobile handset unit in the region, industry sources said.
The company had planned a bio-fuel project a couple of years ago, but did not shortlist the location.
With petrol reserves nearing exhaustion, ethanol blending is being favoured for overcoming the shortfall.
While Mexico and European Union are aiming to launch 100 per cent ethanol-blended petrol products, it is compulsory to have 25 per cent blended petrol in Brazil, industry sources said.
