Rapid industrialization accompanied by dwindling petroleum reserves has intensified global fuel and energy crises. Thus emphasis is on search for alternative sources of energy. In recent years, alcohol has emerged as an alternative fuel and energy source. Alcohol is the product of fermentation of various sugar substrates. Since fermentation is the property of various yeast species. Therefore, research is being carried all over world for selecting high yielding fermenting yeast and cheaper substrate. In view of above, experiments were designed to compare alcohol producing efficacy of indigenously isolated yeast cultures Y5-1 and Y5-2 with that of reference culture of Saccharomyces cereviseae ATCC 9673 in solid state fermentation at 30 °C, 40 rpm for 5 days in three different substrate combinations. The production of ethanol in 75 % apple pomace: 25 % molasses inoculated with Y5-1 at 72 h and reference strain ATCC 9673 was comparable with production level of 6.07 and 6.21 % respectively. However, fermentation efficiency of Y5-1 was highest at 68.54 % as compared to Y5-2, 66.79 % and Y5-3, 60.77. Thus, indigenous yeast isolates prove to have potential for use in alcohol production from agro-processing waste.