Ethanol production capacity in the country would increase to the required level of 1500 crore liters by 2025
The Government of India has recently notified a ’Scheme for extending financial assistance to project proponents for enhancement of their ethanol distillation capacity or to set up distilleries for producing 1st Generation (1G) ethanol from feedstocks such sugarcane, rice available with Food Corporation of India, maize, etc. vide notification dated 14 January 2021’.
With a view to ensuring maximum participation by the entrepreneurs and cooperation by State Governments, a meeting was held through Video Conferencing on 27 January 2021 under the Chairmanship of Secretary, Department of Food & Public Distribution. In the meeting, State Governments, Industry Associations viz ISMA, AIDA, NFCSF, ASSOCHAM, CII, etc. and concerned departments of Central Government have apprised about the details of the Scheme, so that the entrepreneurs of their States/Associations can be sensitized to actively participate and avail the benefit of the Scheme.
It was informed that excess sugar of about 60 Lakh Tonne will be diverted to ethanol, helping sugar mills to timely payments of cane dues to farmers, additional utilization of food-grains of about 135 Lakh Tonne will help in increasing the income of farmers, investment by entrepreneurs will help in the creation of employment in rural areas.
It is expected that with the participation of entrepreneurs and states, ethanol production capacity in the country would increase from the present 684 crore liters to the required level of 1500 crore liters by 2025. There is enough availability of raw material like sugarcane, molasses, damaged food grain (broken rice), FCI Rice, maize etc. Remunerative prices of ethanol from various feed-stocks including sugarcane juice, B-Heavy molasses, C-Heavy molasses, rice available with FCI, damaged food grains and maize have also been fixed. Prices of ethanol are fixed on the basis of prices of raw materials and not on the basis of prices of crude oil.
