Bihar has received in-principle approval for 47 projects aimed at establishing new or expanding existing distilleries, with interest subvention on bank loans, the government said on Wednesday.
Currently, 22 ethanol distilleries are operational in Bihar, including 8 molasses-based and 14 grain-based units, as stated by Minister of State for Food, Nimuben Jayatibhai Bambhaniya, in a written reply to the Lok Sabha.
The government is actively implementing the Ethanol Blended Petrol (EBP) Programme nationwide, which sees Oil Marketing Companies (OMCs) selling petrol blended with ethanol. The programme has set a target of 20% ethanol blending with petrol by 2025-26.
To enhance ethanol production capacity and meet blending targets, the Centre introduced several Ethanol Interest Subvention Schemes between 2018 and 2022. Under these schemes, 47 projects from Bihar have received in-principle approvals, she said.
Each Ethanol Supply Year (ESY), OMCs invite bids from distilleries for ethanol purchases based on feedstock availability. After receiving bids, OMCs allocate ethanol quantities to be supplied by distilleries during the ESY. In the event of feedstock shortages, OMCs offer flexibility by accepting feedstock change requests and issuing revised allocations.
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