The Gujarat government on Thursday signed an agreement with the US-based company Biochem to establish a mega bio-refinery in the petroleum, chemicals and petrochemicals investment region in Dahej in Bharuch at an investment of around Rs 3,000 crore.

The proposed bio-refinery is expected to create 2,000 new jobs in the region, said an official statement, adding the project will be operational over the next 24-30 months.

Under this agreement, which was signed in the presence of chief minister Vijay Rupani, the bio-refinery will produce biofuels like ethanol, bio-diesel and edible corn oil using raw corn as primary material.

The refinery will be a 'zero liquid discharge facility' which will also contribute help increase farmers income..