Chempolis provides the technology to convert feedstock such as sugar-cane pulp, bamboo and straw into bio-fuels and is hopeful of concluding the deal by the middle of 2013, reported Bloomberg.

According to the company, the proposed bio-refinery in India is likely to be based on bagasse, a pulpy waste left over after juice is extracted from sugar cane.

Chempolis is expecting to invest about $52m to produce 15,000 to 30,000 tons of ethanol per year.

The bio-refinery is expected to take 18 to 24 months to be completed from the date of commencement of construction.