The entrepreneurs/project proponents are free to set up ethanol plants in any part of the country without seeking any formal approval from the Government of India. However, various statutory clearances from States/ Ministry of Environment Forest and Climate Change (MoEF&CC)/State Pollution Control Boards (SPCBs), etc. are required to be obtained during the course of setting up of the ethanol plant. Besides, DFPD is implementing scheme for extending interest subvention @ 6% p.a. or 50% of the interest charged by the banks whichever is lower, for 5 years including 1 year moratorium period.

The Central Government does not set up ethanol plants on its own in any part of the country. Central Government is however encouraging setting up of Ethanol Plants.

This information was given by the Minister of State for Petroleum and Natural Gas Shri Rameswar Teli in a written reply in the Lok Sabha today.

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YK/SK