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Cabinet approves scheme for increasing ethanol production

To achieve the current ambitious goal of mixing less than 10% to 20% ethanol and gasoline by 2030, the coalition government today added capacity to rice-containing distilleries from crops other than sugar cane. We have expanded the soft loan scheme to expand. Corn, sorghum, wheat, barley, corn, sugar beet.

So far, a soft loan scheme for capacity expansion has been available in an integrated, independent distillery that produces ethanol only from sugar cane.

“This extension will bring the total cost to about Rs 4,573,” Dharmendra Pradan, the oil minister, told reporters after the cabinet meeting.

Under the soft loan system, the central government provides a 6% subsidy when the interest rate is 12% or more, and a subsidy of up to 50% when the interest rate is less than 12%. amount.This scheme is also available in sugar factories that want to produce ethanol from both sugar cane and non-sugar cane sources.Under the soft loan system so far, about 120 sugar factories have applied for loans to expand production capacity, and a considerable number of sugar factories have already received the funds.

India currently permits the production of ethanol from both sugar cane and non-sugar cane sources, primarily including grains, corn and other items.

The government has set a goal of mixing 10% fuel grade ethanol and gasoline by 2022, 15% by 2026 and 20% by 2030. However, industry sources are said to reach the goal of 20% ethanol mixing with gasoline, and relying on sugar cane as a raw material is not enough, and the share of non-sugar cane sources in ethanol production needs to be increased.

However, this is not possible because the distillery did not have sufficient capacity to produce ethanol from sources other than sugar cane. According to one estimate, India will need about 11 billion liters of ethanol to reach its 20% mixing goal by 2030. Of these, sugarcane can contribute about 6 billion liters due to the limited use of farmland. sugar cane.

To make up for the remaining 4-5 billion liters, the government must rely on other sources, including surplus rice, corn, sorghum, sugar beet and more. The current production capacity of non-sugar cane-based ethanol in India is about 0.25 to 0.3 billion liters, which needs to be increased to 3 to 4 billion liters to meet the new requirements.

“After today’s decision, this additional capacity will be created in both integrated and independent distilleries, while helping to achieve the mixing goal, while in Bihar, a non-sugar but surplus rice and corn state. We will create ethanol production capacity, such as West Bengal, “commented a senior industry official.


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