Govt notifies modified scheme to produce 1G ethanol

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To achieve 20% blending by 2025 as well as to meet out the necessity of ethanol generation capacity in the country, the Department of Food & Public Distribution has modified before scheme & notified the modified scheme for expanding financial aid to project disciples for enhancement of their ethanol distillation capability or to set up distilleries for produce 1st Generation (1G) ethanol from feed commodities. In this article, we will discuss about Govt notifies modified scheme.

Govt notifies modified scheme

The Ministry of Consumer Affairs, Food & Public Distribution has announced the new modification scheme to enhance ethanol distillation capacity in the country for producing 1st Generation (1G) ethanol from commodities such as grains (rice, wheat, barley, corn & sorghum), sugarcane, sugar beet etc.

For working assistance under this scheme, the sugar mills/distilleries/entrepreneurs would be compelled to submit an application in the prescribed proforma to DFPD within 30 days.

The Chief Secretaries of all State Governments/ UTs have been proposed to promote the scheme to the entrepreneurs of their state and facilitate them to contribute in the scheme so that the mark set by the Government could be fulfilled well within the timeline.

Benefits of Modified Scheme

This scheme would not only facilitate diversion of additional sugar to ethanol but would also enable farmers to diversify their crops to cultivate particularly maize/corn which requires lesser water compared to sugarcane and rice. It would strengthen the production of ethanol from various feedstocks thereby, facilitate in attaining blending targets of ethanol with petrol and would reduce import dependency on crude oil, thereby, realizing the goal of Atmanirbhar Bharat.

Significant Points to Remember

There are various significant points under this modified scheme-

  • Under the scheme, Government would accept interest subvention for five years containing one-year moratorium against the loan availed by project proponents from banks
  • Due to upcoming investment in capability addition / new distilleries, numerous new employment opportunities will be created in rural areas.
  • For an exposition of ethanol, there is sufficient availability of commodities & Government has also stabilized remunerative prices of ethanol derived from various feedstocks.
  • Also, the Government has mended mark of 10% blending of fuel rating ethanol with petrol by 2022 & 20% blending by 2030.
  • Further, the Government has also enabled the production of ethanol from B-Heavy Molasses, sugarcane juice, sugar syrup and sugar. Also, establishing the remunerative ex-mill cost of ethanol derived from C-heavy molasses.

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