On Friday, the central authorities introduced that sugar mills have six months till October to suggest new bids for mortgages at a diminished rate of interest to construct new distilleries or increase the present services to extend first-generation ethanol capability within the nation.

The nation presently has an ethanol manufacturing capability of 849 crore litres

A window has been created for extra submissions from undertaking proponents who’ve purchased land for tasks and gained environmental clearance it added, with a view to be certain that solely real undertaking proponents are granted in-principle approval by the Union Food Ministry. According to an official from April 21 to October 22, the six-month window might be open.

According to the federal government new, grain-based distilleries can be inbuilt deficit states such because the northeast, southern states akin to Tamil Nadu, Andhra Pradesh, and Telangana, and states akin to Bihar, Madhya Pradesh, and others. This would profit the distribution of ethanol manufacturing.


Since 2018, the federal government has been implementing a scheme to supply mortgage services to sugar mills and distilleries with the purpose of accelerating ethanol manufacturing and provide beneath the Ethanol Blended with Petrol (EBP) Program, significantly through the surplus season, and additional making enhancements in the sugar mills’ liquidity place, and permitting them to clear farmer cane worth arrears. 

The authorities is offering monetary help within the type of curiosity subventions on loans to be offered by banks for 5 years, together with a one-year moratorium, at a fee of 6% per 12 months or 50% of the speed of curiosity paid by banks, whichever is decrease.


Ethanol manufacturing capability is being elevated to cut back the nation’s reliance on imported fossil fuels, save overseas money on crude oil import bills, and cut back air pollution.


The nation presently has an ethanol manufacturing capability of 849 crore liters, with 569 crore liters of molasses-based refineries and 280 crore liters of grain-based distilleries in keeping with the federal government. From 2013-14 to 2020-21, the output of fuel-grade ethanol and its provide to grease advertising and marketing firms (OMCs) elevated eightfold.

It reached a most of 302.30 crore liter in 2020-21, attaining 8.10% mixing. In the present fiscal 12 months 2021-22, 158 crore litres of ethanol had been blended with gasoline till April 17, leading to a 9.77% mix. According to an official, it’s projected {that a} 10% mixing goal can be met in 2021-22.



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