The Bengal government has announced a policy to promote ethanol production and promotion in the state.

The government will encourage industry to procure broken rice kernels from farmers and produce ethanol, which is gaining popularity as clean bio fuel.

Chief minister Banerjee said an investment of Rs 1,500 crore may come up in the next one year, creating employment opportunities for 48,000 people.

These units are likely to come up in rural areas. Oil companies blend 10 per cent ethanol with petrol and there are plans to increase the share of ethanol to 20 per cent in petrol.