The Cabinet Committee on Economic Affairs (CCEA) on December 30, 2020 approved modified scheme to enhance ethanol distillation capacity in the country for producing 1st Generation, 1G ethanol from feed stocks such as cereals like rice, wheat, barley, corn and sorghum and sugarcane, sugar beet etc.
- First-generation biofuels (1G ethanol) are directly related to a biomass that is generally edible.
- Cabinet approved an interest subvention of 4 thousand 5 hundred 73 crore rupees for new distilleries producing ethanol.
Government steps for ethanol production
- Government has fixed target of 10% blending of fuel grade ethanol with petrol by 2022, 15% blending by 2026 & 20% blending by 2030.
- The Government has also allowed production of ethanol from B-Heavy Molasses, sugarcane juice, sugar syrup and sugar.
- The Government has been fixing the remunerative ex-mill price of ethanol derived from C-heavy molasses, B-heavy molasses and ethanol derived from sugarcane juice/ sugar/ sugar syrup for ethanol season.
- To increase production of fuel grade ethanol, Govt. is also encouraging distilleries to produce ethanol from maize; & rice available with FCI.
