Indian Oil Corporation (IOC) plans to become an ethanol producer, reports Business Line.

The company would be looking at both organic and inorganic prospects for expanding its business in the bio-fuel category.

IOC has been procuring ethanol from other suppliers for selling the 5% ethanol-blended petrol. The government has already made 5% blending of ethanol mandatory in notified States and Union Territories and 10% blending is to become effective from October this year.

Shares of the company gained Rs 16.3, or 3.64%, to end at Rs 463.5. The total volume of shares traded was 63,573 at the BSE. (Friday)