HPCL Biofuels Limited was incorporated in October, 2009 as a wholly owned subsidiary of HPCL as a part of their backward integration. HBL was to set up integrated Sugar, Ethanol & Co-gen power plants by reviving two closed Sugar Mills namely, Sugauli & Lauriya in the state of Bihar. The Ethanol from these Plants were to be used for blending in petrol which is the ambitious Ethanol Blending Program of the Union Government. The Company successfully constructed the integrated plants within a timespan of two years and started commercial production in FY12. The company has operated the plants during the subsequent two cane crushing seasons.