Govt's nod to 422 ethanol projects; Industries geared up to realise India's goal of 20% ethanol blending by 2025, says Dr Pramod Chaudhari

Mumbai, April 03: In a massive push for the India's nascent ethanol industry, the government has given in principle approval to 422 ethanol projects, which may add annual production capacity by 1,675 crore litres. These projects, which are likely to bring a combined investment Rs 41,000 crore, would get soft loan from banks on easier terms. This would benefit farmers and fast track the programme of ethanol blending with petrol to reduce dependency on oil imports.

 

The government has set a target of achieving 8.5% ethanol blending this year, followed by 10% next year and 20% by 2025. The projects will be based across 22 states in the country. Of these, 201 proposals are from grain-based distilleries, while 141 are from distilleries that use both, grain and molasses as feedstock. It should be noted that in the ongoing year, the government has set a target to achieve 8.5 per cent ethanol blending in petrol. This will then be elevated to 10 per cent by the end of next year, and to 20 per cent by 2025.

 

A senior government official has said that the surge in ethanol-based projects is due to the it’s recent announcement to extend subsidised credit facilities to grain-based distilleries also. The government provides interest subvention of 6 per cent or half the interest rate charged by the banks for five years, including a one-year moratorium. “Out of 422 proposals, 201 proposals were from grain-based distilleries while 141 were from distilleries using both grain and molasses as feed stock. We expect more such projects to come up,” the statement read.

 

 

Commenting on the same, Dr Pramod Chaudhari, Praj Industries ltd said that the step by government was a positive news for the ethanol industry. "Ethanol produced from biobased feedstock has well established itself as a enabler for India's socioeconomical development and also sustainable solution to conserve environment. Government has made several strategies interventions from time to time by way of progressive policy framework for developing ecosystem for ethanol Industry's long term growth", he said.

 

 

He also added that the said development is a positive step in that direction and will go long way in facilitating India's energy self reliance as part of Atmanirbhar Bharat Abhiyan. "We at Praj are well and truly geared up to provide technology led EPC solutions to realise Govt of India's stated goal of 20% ethanol blending by 2025", he added.

 

 

The government has also asked sugar mills to divert 6 million tonnes surplus sugar for ethanol production. It has also encouraged ethanol production directly from broken rice, rotten grains, maize and other grains, helping farmers get remunerative prices.

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