Abstract: Due to limited availability of natural fuels like Gasoline, diesel, LPG etc, scientists are going to research on agricultural based fuels. Many countries like Brazil, USA, New Zealand, India, etc, are using alcohols blended gasoline and biodiesel blended diesel. The increase in capacity of the distilleries to produce fuel-grade and chemical grade ethanol will immensely increase the water pollution problem ,due to generation of large volume of distillery waste water (DWW) having high biological oxygen demand(BOD), chemical oxygen demand (COD) with high color intensity.