Ugandan sugar producer Kakira Sugar Ltd has begun commercial operations at a UGX-133-billion (USD 36.9m/EUR 34.8m) ethanol plant, Daily Monitor reported this week.

The company brought the facility online in November, joint managing director Mayur Madhvani told the local daily.

The plant, built by India's Praj Industries Ltd, has an annual capacity of 20 million litres (5.3 million gallons) of fuel-grade ethanol. It will use as feedstock molasses from Kakira Sugar's sugar production. The company will be selling the ethanol to distributors of petroleum products.

Energy minister Irene Muloni tabled a bill in December for the introduction of regulated proportions for biofuel blending. She has told the newspaper it would allow for the blending of between 5% and 15% ethanol.