The Haryana government signed a Memorandum of Understanding (MoU) with Indian Oil Corporation (IOC) to set up an ethanol plant in Panipat with an outlay of over Rs 900 crore. The MoU will be valid for one year. This plant will motivate farmers in its 50 km radius area to manage crop residue and prevent straw burning and help to fulfill increasing demand of ethanol and also bio-fuels for consumers of petroleum product. The proposed capacity of this ethanol plant will be of producing 100 kilolitres of ethanol per day. It will help to manage crop residue and prevent straw burning before upcoming paddy season. 10 cooperative and three private sugar mills in the state will provide raw fuel to this plant. There will be regular supply of raw material to this plant as paddy crop residue will be provided as raw material after end of paddy season in October and November and thus, there will be regular supply of raw material to the plant.