Under the ethanol interest subvention scheme, the government has given in-principle approval to nine ethanol projects including five grain-based, three molasses-based, and one project based on dual feedstock.
These projects are expected to bring in investment worth Rs 1,034 crore and would create hundreds of new jobs.
9 more ethanol projects were given In-Principle approval #Ethanol Interest Subvention Schemes which are expected to add the additional capacity of about 35 crore liters. pic.twitter.com/5dvPDdeRPv
— Department of Food & Public Distribution (@fooddeptgoi) February 17, 2023
As many as 299 projects have received in-principle approvals under the ethanol interest subvention scheme since April 22, 2022, which would add ethanol production of about 1,481 crore liters.
Recently, to boost ethanol production, Prime Minister launched E20 fuel at 84 retail outlets of Oil Marketing Companies in 11 States/UTs along the lines of the ethanol blending roadmap.
Growth of ethanol as biofuel sector in last 5 years has amply supported the sugar sector as diversion of sugar to ethanol has led to better financial positions of sugar mills due to faster payments, reduced working capital requirements and less blockage of funds due to less surplus sugar with mills. During 2021-22, revenue of more than ₹ 20,000 crore has been made by sugar mills/distilleries from sale of ethanol which has also played its role in early clearance of cane dues of farmers.
The Ethanol Blending Programme has saved foreign exchange as well as strengthen energy security of the country. By 2025, it is targeted to divert more than 60 LMT of excess sugar to ethanol, which would solve the problem of high inventories of sugar, improve liquidity of mills thereby help in timely payment of cane dues of farmers and will also generate employment opportunities in rural areas.
