In newsThe government on notified the modified scheme for extending financial assistance for producing “1st generation” (1G) ethanol from feed stocks such as cereals (rice, wheat, barley, corn and sorghum), sugarcane and sugar beet.
Highlights
- This was done to to set up distilleries for producing 1st Generation (1G) ethanol from feed stocks such as cereals (rice, wheat, barley, corn & sorghum), sugarcane, sugar beet etc. or converting molasses based distilleries to dual feedstock vide notification dated 14th January, 2021.
- And to achieve 20% blending by 2025 as well as to meet out the requirement of ethanolproduction capacity in the country.
- Under the scheme , Government would bear interest subvention for five years including one year moratorium against the loan availed by project proponents from banks @ 6% per annum or 50% of the rate of interest charged by banks whichever is lower
- Under the scheme, the Centre will provide interest subvention to encourage the funding in this sector.
- Sugarcane and ethanol is produced mainly in three states viz Uttar Pradesh, Maharashtra and Karnataka.
Vision
To boost agricultural economy, to reduce dependence on imported fossil fuel, to save foreign exchange on account of crude oil import bill & to reduce the air pollution, the Government has fixed target of 10% blending of fuel grade ethanol with petrol by 2022 & 20% blending by 2030.
Significance
- 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.
First generation ethanol It is produced from sugarcane in an autonomous distillery consists of sugarcane cleaning and preparation, extraction of sugars, juice treatment, concentration and fermentation, distillation, dehydration and cogeneration.
Source: Indian Express
