In a bid to increase the production of ethanol and its supply under Ethanol Blended with Petrol (EBP) Programme, the government has extended the deadline by six months. The scheme aims at extending financial assistance to molasses-based standalone distilleries for enhancement and augmentation of ethanol production capacity. The fresh deadline will be April 21, 2023.

Eligibility criteria for application submission

“In accordance to the Centre’s release, the sugar mills, distilleries, and business owners who have purchased land and received environmental permission for their project are required to submit an application cum proposal in the specified format (Annexure-I) to the Director (S&VO), Directorate of Sugar and Vegetable Oils, Department of Food & Public Distribution (DFPD), Krishi Bhawan, New Delhi, within one year starting on April 22, 2022,” the release said.

Earlier, the government urged all distilleries in the country to maximize production of ethanol to ensure the success of the country’s ethanol blending program.

India’s ethanol blending program aims to reduce pollution and increase value added in the domestic sugar industry. The government has scaled up blending targets from 5% to 10% under the program.

India has taken great strides in achieving 10% ethanol blending in petrol (E10), 5 months ahead of the target. Buoyant on this success, India is on course to achieve E20 by the year 2025 in its pursuit of energy independence and decarbonisation of the transportation sector. Progressive policy framework, indigenously developed technology and a well-oiled industry ecosystem are some of the major driving factors in this success story.

DFPD is facilitating capital investments through interest subvention schemes and allocation of excess feedstock diversion for ethanol production. All these efforts have led to ethanol production capacity to 923 crore litres per annum.

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