Government of India launched Ethanol Blended Petrol (EBP) programme in 2003 for undertaking blending of ethanol in Petrol to address environmental concerns due to fossil fuel burning, provide remuneration to farmers, subsidize crude imports and achieve forex savings. Presently, EBP is being run in 21 States and 4 UTs of the country.
Under EBP programme, OMCs are to blend upto 10% of ethanol in Petrol. The present policy allows procurement of ethanol produced from molasses and non-food feed stock like celluloses and lignocelluloses material including petrochemical route.
Ministry of Petroleum & Natural Gas has targeted to achieve 10% blending percentage of Ethanol in petrol by 2022. Despite efforts of the Government such as higher ethanol prices and simplification of ethanol purchase system, the highest ever ethanol procurement stands around 150 crore litres during Ethanol supply year 2017-18 which is sufficient for around 4.22% blending on Pan India basis. Therefore, an alternate route viz. Second Generation (2G) Ethanol from biomass and other wastes is being explored by MoP&NG to bridge the supply gap for EBP programme.
In this direction, “Pradhan Mantri JI-VAN Yojana” is being launched as a tool to create 2G Ethanol capacity in the country and attract investments in this new sector.
Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana
It provides financial support to Integrated Bioethanol Projects using lignocellulosic biomass and other renewable feedstock.
Under this Yojana, 12 Commercial Scale and 10 demonstration scale Second Generation (2G) ethanol Projects will be provided a Viability Gap Funding (VGF) support in two phases:
Centre for High Technology (CHT), a technical body under the aegis of MoP&NG, will be the implementation Agency for the scheme.