Govt notifies modified scheme to supply 1G ethanol

The authorities on Thursday notified the modified scheme for extending monetary help for producing “1st generation” (1G) ethanol from feed shares similar to cereals (rice, wheat, barley, corn and sorghum), sugarcane and sugar beet.
Under the scheme, the Centre will present curiosity subvention to encourage the funding on this sector. According to the Ministry of Consumer Affairs, Food and Public Distribution, the scheme will appeal to an funding of about Rs 40,000 crore.
In a press release, the ministry mentioned, “To obtain 20% mixing by 2025 in addition to to fulfill out the requirement of ethanol manufacturing capability within the nation, the Department of Food & Public Distribution has modified earlier scheme & notified the modified scheme for extending monetary help to mission proponents for enhancement of their ethanol distillation capability or to arrange distilleries for producing 1st Generation (1G) ethanol from feed shares similar to cereals (rice, wheat, barley, corn & sorghum), sugarcane, sugar beet and so on. or changing molasses based mostly distilleries to twin feedstock vide notification dated 14th January, 2021.
“To increase production of fuel grade ethanol, Govt. is also encouraging distilleries to produce ethanol from maize; & rice available with Food Corporation of India,” the assertion mentioned.
The Ministry mentioned that to avail the help below this scheme, the sugar mills/ distilleries/entrepreneurs can be required to submit an software within the prescribed proforma to the Food Department inside 30 days from the date of notification of the scheme.
The ministry mentioned states have been requested to advertise the scheme “to the entrepreneurs of their state and encourage them to participate in the scheme so that the target set by the Government could be achieved well within the timeline.”
The assertion mentioned, “This scheme would not only facilitate diversion of excess sugar to ethanol but would also encourage farmers to diversify their crops to cultivate particularly maize/corn which needs lesser water compared to sugarcane and rice. It would enhance production of ethanol from various feed stocks thereby, facilitate in achieving blending targets of ethanol with petrol and would reduce import dependency on crude oil, thereby, realizing the goal of Atmanirbhar Bharat.”
“It will also enhance income of farmers as setting up of new distilleries would not only increase demand of their crops but would assure farmers of getting better price for their crops,” it mentioned.
The authorities had earlier fastened a goal of 10 per cent mixing of gas grade ethanol with petrol by 2022 & 20 per cent mixing by 2030. “Now it has been proposed to prepone the 20% blending of ethanol with petrol by 2025,” the assertion mentioned.
According to the ministry, to realize 20 per cent mixing by 2025 and to fulfill the requirement of chemical & different sectors, about 1,200 crore liters of alcohol / ethanol can be required. “Out of a total requirement of 1,200 crore litres, 700 crore litres is required to be supplied by sugar industry & another 500 crore liters need to be supplied by grain based distilleries,” mentioned the assertion.

“To produce 700 crore liters of ethanol by sugar industry, about 60 Lakh Metric Tonne (LMT) of surplus sugar would be diverted to ethanol which would solve the problem of excess sugar, relieve sugar industry from the problem of storage of surplus sugar, & improve the revenue realization of sugar mills which will facilitate them in making timely payment of cane dues of sugarcane farmers,” the assertion mentioned.
“To produce 500 crore liters of ethanol/alcohol from food grains, about 125 LMT of food grains would be utilized; this extra consumption of surplus food grains would ultimately benefit the farmers as they will get better price for their produce and assured buyers; and thus will also increase the income of crores of farmers across the country.”