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Informist, Friday, Aug 9, 2024

NEW DELHI – The Union Cabinet today approved an amendment to the "Pradhan Mantri JI-VAN Yojana" and extended the timeline for its implementation by five years till 2028-29. The scheme aims to promote the establishment of second-generation bioethanol facilities that use agricultural and forestry residues, industrial waste, synthesis gas and algae to produce advanced biofuel, moving away from food crops used in the production of first-generation biofuels.

"To promote multiple technologies and multiple feedstocks, preference would now be given to project proposals with new technologies and innovations in the sector," the government said in a release. The government said it was amending the scheme to keep pace with the latest developments in the field of biofuels and to attract more investments. 

The scheme also aims to provide remunerative income for farmers for agricultural residue, address environmental pollution, create local employment opportunities, and contribute to India's energy security and self-reliance. It will also help in achieving India’s ambitious target for net-zero greenhouse gas emissions by 2070.

To encourage second-generation ethanol capacity in the country and attract investment in this sector, the “Pradhan Mantri JI-VAN Yojana” was notified in 2019 to provide financial assistance to these advanced bioethanol projects, according to the release.

The government has been promoting the blending of ethanol with petrol under the Ethanol Blended Petrol Programme, wherein public-sector oil marketing companies sell petrol blended with ethanol. To reduce dependence on crude oil imports, the government set a target of achieving 15% blending of ethanol with petrol in 2023-24 (Nov-Oct), 18% in the subsequent year, and 20% in 2025-26. To achieve the 15% blending aim, India needs about 8.25 bln ltr of ethanol in the current ethanol supply year, which runs from November through October.

However, experts believe India is likely to miss the 15% blending target this year. Oil marketing companies procured 4.01 bln ltr of ethanol and achieved a cumulative blending of 13.0% as of Jul 1, accounting for the first eight months of the ethanol blending year, according to a monthly report by the Petroleum Planning & Analysis Cell.  End

Reported by Sayantan Sarkar

Edited by Rajeev Pai

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