Center opens interest subsidy window for mills to submit ethanol proposals


On Friday, the central government announced that sugar mills had six months until October to offer new mortgage offers at a reduced interest rate to build new distilleries or expand existing facilities to increase capacity. first-generation ethanol in the country.

The country currently has an ethanol production capacity of 849 crore liters

A window has been created for additional submissions from project developers who have purchased land for projects and obtained environmental clearance, he added, to ensure that only genuine project developers receive approval in principle. of the Union Ministry of Food. According to an official from April 21 to October 22, the six-month window will be open.

According to the government, new grain-based distilleries would be built in deficit states such as the North East, southern states such as Tamil Nadu, Andhra Pradesh and Telangana, and states such as Bihar, Madhya Pradesh and others. This would benefit the distribution of ethanol production.

Since 2018, the government has been implementing a scheme to provide loan facilities to sugar mills and distilleries with the aim of increasing production and supply of ethanol under the Ethanol Blended with Petrol (EBP) scheme, particularly during the surplus season, and to bring about further improvements in the liquidity position of sugar mills and enabling them to clear cane price arrears to farmers.

The government is providing financial support in the form of interest subsidies on loans to be provided by banks for five years, including a one-year moratorium, at a rate of 6% per annum or 50% of the rate of interest paid by banks, the lowest of them.

Ethanol production capacity is being increased to reduce the country’s dependence on imported fossil fuels, save foreign money on crude oil import expenses, and reduce pollution.

The country currently has an ethanol production capacity of 849 crore liters, with 569 crore liters from molasses-based refineries and 280 crore liters from grain-based distilleries according to the government. From 2013-14 to 2020-21, the production of fuel-grade ethanol and its supply to petroleum marketing companies (OMCs) increased eightfold.

It peaked at 302.30 crore per liter in 2020-21, reaching 8.10% blend. In the current fiscal year 2021-22, 158 crore liters of ethanol have been blended into gasoline through April 17, resulting in a 9.77% blend. According to one official, a 10% blending target is expected to be achieved in 2021-2022.


About Author

Comments are closed.