The Centre has stated that ethanol plants and distilleries are not set up by the government but by private players and cooperative sugar mills after obtaining necessary approvals, Indian Cooperative reported.
Replying in the Lok Sabha, Minister of State Nimuben Jayantibhai Bambhaniya said entrepreneurs are free to establish ethanol units, subject to clearances from the Centre and the respective State or Union Territory governments.
She said the governmentтАЩs role has been limited to providing financial support through a series of schemes launched between 2018 and 2022 to boost ethanol production capacity and support the blending programme.
These schemes encourage sugar mills and distilleries to set up new plants or expand existing ones. In 2021, the government widened the scope to include ethanol production from grains.
The minister also said a dedicated interest support scheme for cooperative sugar mills was introduced in 2025. Under this, mills are given a six-month window to apply for converting their sugarcane-based units into multi-feed ethanol plants.
Under the scheme, the government facilitates bank loans and provides interest relief of 6 per cent or 50 per cent of the interest charged by lenders, whichever is lower, for five years, including a one-year moratorium.
The Centre said these measures are aimed at increasing ethanol production while allowing the industry to take the lead in setting up facilities.
