India's Ruchi Soya has been given the go-ahead to set up new facilities including palm fruit and kernel processing units by the Karnataka state government, just-food reported in June.
The processing facilities in the Dakshina Kannada will produce edible oil, palm kernel cake and palm kernel oil and solar power.
Ruchi Soya founder and managing director Dinesh Shahra said the approval marked a major step towards "reducing the dependency of the country on imports for its edible oil needs".
Shahra said the new facilities would boost sales and the efficient handling of produce and sales.
In addition, Ruchi would also establish a nursery that will produce "high-yielding varieties of plant species" which would also raise awareness about oil palm cultivation, the report said.
Ruchi had been encouraging farmers to expand domestic palm plantations and had procurement rights in palm planted areas including 4,000ha in Karnataka alone, just-food said.
In May, Ruchi Soya reported a net loss of Rs 891.29 crore (US$13.35M) for the 2016 year ending on 31 March, compared with a Rs 60.93 crore profit (US$912M) in 2015.
“Performance was adversely impacted by sustained pressure in the global commodities market, a weak and erratic monsoon, foreign exchange fluctuations and the overall economic downturn,” the company said.