The Minister of State for Petroleum and Natural Gas, Shri Rameswar Teli in a written reply to a question in the Lok Sabha today informed that in March, 2019, Government had notified the “Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana” for providing financial support to integrated bio-ethanol projects for setting up Second Generation (2G) ethanol projects in the country using lignocellulosic biomass and other renewable feedstock. The total financial outlay for the scheme is Rs. 1969.50 crore for the period 2018-19 to 2023-24.

Under the PM JI-VAN Yojana, the maximum financial assistance of Rs.150 crore per project for commercial projects and Rs.15 crore per project for demonstration projects has been prescribed for improving commercial viability as well as promoting R&D for development and adoption of technologies in the field of production of 2G ethanol.

Financial assistance of Rs. 150 crore each to the four commercial Second Generation (2G) bio-ethanol projects at Bathinda in Punjab, Panipat in Haryana, Bargarh in Odisha and Numaligarh in Assam and Rs. 15 crore to one demonstration project at Panipat in Haryana has been approved under the Scheme.  These commercial projects are in advanced stage of construction and are expected to be commissioned from 2022-23. So far, Rs. 151.50 crore has been released based on the milestones achieved as per the scheme.  

At present, there is no project for 2G ethanol in the State of Andhra Pradesh under this Scheme. Apart from financial support through PM JI-VAN Yojana, other steps taken to promote 2G Ethanol Plants include imposition of additional excise duty on non-blended fuels; encouraging studies on various aspects including; identifying areas having the potential of surplus Biofuels feedstocks; policy interventions to mainstream biofuels; separate price for 2G ethanol, etc.

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