In a filing to the BSE, the company said the plant will produce ethanol and premium grade extra neutral alcohol (beverage alcohol).
It, however, did not disclose the value of the order.
Praj Industries will provide key technologies for fermentation, distillation and waste-water treatment, it said.
The plant will use captive power for about 50-60 per cent of its electricity requirement and the effluents generated by the plant will be converted into bio-compost, it added.
In the filing, Praj said it had recently commissioned a fuel grade ethanol plant in Sierra Leone in Africa.
Kakira Sugar crushes over 6,000 tonnes of sugarcane per day and produces over 1,50,000 tonnes of sugar annually.
As of 2.56 p.m. shares in Praj Industries traded 2.98 per cent higher at Rs 60.55 apiece, outperforming the broader Nifty, which was down 0.02 per cent.