The government is implementing various measures to increase ethanol production while providing financial support to sugar mills and grain-based plants to enhance output. These initiatives aim to strengthen the ethanol supply chain and promote sustainable fuel alternatives.
A total of 304 ethanol manufacturing distilleries (including standalone distilleries and distilleries attached with sugar mills) have availed/ are availing financial assistance under the schemes notified from 2018 to 2022, according to the government data.
In a response to the unstarred question in Lok Sabha, Minister of State for Consumer Affairs, Food & Public Distribution, Nimuben Jayantibhai Bambhaniya, informed that under the schemes for extending financial assistance to sugar mills/ grain based distilleries for enhancement and augmentation of ethanol production capacity from 2018 to 2022, Government has given in-principle approval to a total of 1212 eligible projects (590 molasses-based, 474 grain-based and 148 dual-feed).
The total budget outlay for the scheme is Rs. 4687 crore. National Bank for Agriculture and Rural Development (NABARD) has been appointed as the Nodal Agency for releasing interest subvention to eligible sugar mills / grain based distilleries. Funds are released to NABARD for further payment to lending banks of eligible sugar mills / grain based distilleries.
As per information received from NABARD, 6 distilleries from the State of Karnataka have been declared Non- Performing Assets (NPAs) by their lending banks since inception of the scheme, the minister informed.
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