The Department of Food & Public Distribution (GoI) has notified a new scheme to support Cooperative Sugar Mills (CSMs) under a modified Ethanol Interest Subvention Scheme. Here are the key points:
- Objective:
- To convert existing sugarcane-based feedstock ethanol plants in CSMs into multi-feedstock plants capable of processing grains like maize and damaged food grains (DFG).
- This conversion will help overcome the seasonal limitations of sugarcane crushing (typically 4–5 months per year), ensuring continuous operation throughout the year and improving overall efficiency and productivity.
- Financial Incentive:
- The scheme provides interest subvention at 6% per annum or 50% of the rate of interest charged by banks/financial institutions (whichever is lower).
- This subsidy covers the interest on loans extended by banks/financial institutions, fully borne by the Central Government for five years, including a one-year moratorium.
- Ethanol Blended with Petrol (EBP) :
- The initiative aligns with the broader Ethanol Blended with Petrol (EBP) Programme, which targets a 20% blending of ethanol with petrol by 2025.
- Various ethanol interest subvention schemes have been notified between July 2018 and April 2022 to support this goal.
(Source: PIB)
