The government has planned a programme to increase the blending of ethanol with petrol with an aim to increase the earnings of farmers and lower the import of crude oil.
According to the news report published on Zeebiz.com, a meeting of the Approval Committee, under the chairmanship of Secretary (Food), was held to consider proposals received under modified interest scheme for extending financial assistance to project proponents for producing 1G Ethanol from foodgrains, molasses etc.
The approval committee has recommended 418 applications to produce 1670 crore litre ethanol with an investment of Rs 40,000 crore. This will generate employment directly and indirectly.
The ethanol produced from these plants will be blended with petrol to reduce the dependency on the import of crude oil. This will help farmers to increase their income from the cultivation of sugarcane.