PM JI-VAN Yojana helping ethanol projects in India

Minister of State in the Ministry of Petroleum & Natural Gas, Shri Rameswar Teli, in a written reply in the Lok Sabha informed about how “Pradhan Mantri JI-VAN Yojana” helping in setting up ethanol projects in the country.

In March, 2019, Government had notified the “Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana” for providing financial support to integrated bio-ethanol projects for setting up Second Generation (2G) ethanol projects in the country using lignocellulosic biomass and other renewable feedstocks. The total financial outlay for the scheme is Rs. 1969.50 crore for the period 2018-19 to 2023-24.

Under the PM JI-VAN Yojana, the maximum financial assistance of Rs.150 crore per project for commercial projects and Rs.15 crore per project for demonstration projects has been prescribed for enhancing commercial viability as well as promoting R&D for development and adoption of technologies in the field of production of 2G ethanol.

Under this scheme, financial assistance of Rs. 880 crore has been approved to Public and Private Sector Oil Marketing Companies (OMCs) for six commercial Second Generation (2G) bio-ethanol projects in Punjab, Haryana, Odisha, Assam and Karnataka and two demonstration 2G ethanol projects one each in Haryana and Andhra Pradesh. Out of these, commercial project at Panipat (Haryana) has been dedicated to the Nation and commercial projects at Bhatinda (Punjab), Bargarh (Odisha), and Numaligarh (Assam) are in advanced stages of construction.

Apart from financial support through PM JI-VAN Yojana, other steps taken to promote 2G Ethanol Plants include imposition of additional excise duty on non-blended fuels; off take assurance by OMCs for 15 years to private stakeholders by signing Ethanol Purchase Agreements (EPA); diversification of feedstock for 2G ethanol production; separate price for 2G ethanol, lowered GST rate to 5% on ethanol for EBP Programme; etc.

(Source: PIB)