Assistance to 29 ethanol projects in Odisha approved under Ethanol Interest Subvention Scheme: Minister

Suresh Gopi, the Minister of State for Petroleum and Natural Gas of India, provided details about ethanol projects in Odisha in response to an unstarred question in the Rajya Sabha.

While answering whether the government has identified the state of Odisha as a potential hub for biofuel production, and if so, the details of the projects proposed or under implementation in the state, he stated, “Biofuel production plants are set up by entrepreneurs/companies/co-operative societies, etc. at locations that are decided by them on the basis of their investment plans and the technoeconomic viability of the project. Under the Ethanol Interest Subvention Scheme of Department of Food and Public Distribution (DFPD), assistance to 29 projects in Odisha has been approved. At present, 5 ethanol distilleries with an annual capacity of 20 crore litres are operational in Odisha. Bharat Petroleum Corporation Limited (BPCL) has taken up setting up of a 200 Kilo Litre Per Day (KLPD) integrated ethanol plant at Bargarh, Odisha, comprising 100 KLPD each of First Generation (1G) and Second Generation (2G) technology.”

“It is estimated that the blending of bio-ethanol from the BPCL ethanol plant alone will result in total emission reduction of approximately 1.1 lakh tons CO2 equivalent while also creating direct and indirect employment opportunities for around 1000 people. To encourage local farmers for participation in biomass supply chain, number of capacity building seminars and demonstrations of farm implement usage have been done in adjoining areas with aim to mechanize the farming process and seed investments in the sector,” he responded to questions regarding the estimated impact of these projects and steps being taken to encourage local farmers to participate in biofuel production initiatives.

India has made significant progress in ethanol blending in recent years. It has not only helped reduce reliance on crude imports but also assisted in enhancing farmers’ incomes and supporting industries. Ethanol is evidently a game-changer with the aim of enhancing India’s energy security. India has successfully met its blending targets in the past and remains on course to achieve 20% blending soon.

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