Introduction: The Ministry of Consumer Affairs, Food, and Public Distribution, in its pursuit to escalate ethanol production, has introduced a groundbreaking scheme aimed at providing financial assistance to sugar mills. This initiative aligns with the Ethanol Blended with Petrol (EBP) Programme, focusing on augmenting ethanol production capacities. This article delves into the details of the scheme, its provisions, and the impact it is poised to have on the ethanol industry.
Detailed Analysis: The Central Government, through a notification dated December 28, 2023, has extended a six-month window, effective from April 22, 2022, inviting fresh applications under the modified scheme initiated on January 14, 2021. The scheme targets project proponents who have acquired land for ethanol projects and obtained Environmental Clearance (EC). It encourages the enhancement of existing ethanol distillation capacities or the establishment of new distilleries for producing 1st Generation (1G) ethanol from various feedstocks, including cereals, sugarcane, and sugar beet.
The scheme, initially introduced on January 14, 2021, was extended for one year from April 22, 2022, and has undergone amendments on May 6, 2022, February 3, 2023, and June 21, 2023. Notably, the focus is on streamlining the process for obtaining financial assistance to boost ethanol production.
In line with the scheme’s objectives, the Central Government emphasizes the need for timely execution. As per para 5(ii) of the notification dated April 22, 2022, applicants are required to secure loan disbursal from eligible financial institutions within one year or by June 30, 2024, whichever is later, from the date of in-principle approval of the Department of Food and Public Distribution (DFPD). Failure to comply will result in the cancellation of the in-principle approval. Furthermore, the approved projects must be completed within two years from the date of the first installment of the loan disbursal.
Conclusion: The government’s proactive approach to bolster ethanol production is evident through the extended financial assistance scheme. By incentivizing sugar mills to enhance their ethanol production capacities, the Central Government aims to contribute significantly to the Ethanol Blended with Petrol (EBP) Programme. This initiative not only supports environmental sustainability but also augurs well for the economic landscape. Stakeholders in the ethanol industry should seize this opportunity, ensuring timely applications, approvals, and project completion to reap the benefits of the scheme and contribute to the nation’s sustainable energy goals. As the government continues to foster such initiatives, the trajectory for the ethanol industry appears promising, paving the way for a greener and more economically viable future.
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MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(Department of Food and Public Distribution)
NOTIFICATION
New Delhi, the 28th December, 2023
F. No.1(10)/2018-SP-I.—The Central Government with a view to increase production of ethanol and its supply under Ethanol Blended with Petrol (EBP) Programme, opened a window for six months w.e.f. 22.04.2022 under modified scheme dated 14.01.2021 for inviting fresh applications from those project proponents who have acquired land for ethanol project and obtained Environmental Clearance (EC) for enhancement of their existing ethanol distillation capacity or to set up new distillery for producing 1st Generation (1G) ethanol from feed stocks such as cereals (rice, wheat, barley, corn & sorghum), sugarcane (including sugar, sugar syrup, sugarcane juice, Bheavy molasses, C-heavy molasses), sugar beet etc. vide notification No. 1(10)/2018-SP-I dated 22.04.2022 which was further extended for one year w.e.f 22.04.2022 vide notification dated 20.10.2022 and amended vide notifications dated 06.05.2022, 03.02.2023 and 21.06.2023.
2. Now in pursuance of para 9 of the said notification dated 22.04.2022, Central Government has decided that Para 5(ii) of the notification dated 22.04.2022 may be read as under:-
“The applicant should get the loan disbursed from the bank/ NCDC /IREDA / NBFCs / any other financial institutions which are eligible for re-finance from NABARD, within one year or 30.06.2024 whichever is later from the date of in-principle approval of DFPD, failing which the in-principle approval for the project will stand cancelled. Further, the project should be completed within 2 years from the date of disbursement of 1st instalment of loan from bank/ NCDC/IREDA/NBFCs/any other financial institutions which are eligible for re-finance from NABARD.”
ASWANI SRIVASTAVA, Jt. Secy.
