Mumbai: Tata Chemicals will set up its first bio-ethanol plant in Maharahstra's Nanded district, a company release here said Monday.

According to the release, Maharashtra's Minister for Industry, Mining, Protocol and Cultural Affairs Ashokrao Chavan laid the foundation stone of the proposed plant Sunday.

The plant would come up at the Maharashtra Industrial Development Corporation's (MIDC) Krushnoor industrial area and will start with a production capacity of 30 litres per day. The plant will use sweet sorghum as the raw material.

The MIDC has assured the local residents that they would be trained to help them work in the bio-ethanol plant.

Chavan said the region would be provided with necessary infrastructure, including uninterrupted water supply and electricity.

He told a gathering of nearly 4,000 people that the government would ensure that all approvals needed for the plant are streamlined so that it can go operational by 2008 end.