To keep pace with the latest developments in the field of biofuels and to attract more investment, the Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the modified Pradhan Mantri JI-VAN Yojana.

The modified scheme extends timeline for implementation of scheme by Five (5) year i.e. till 2028-29 and includes advanced biofuels produced from lignocellulosic feedstocks i.e. agricultural and forestry residues, industrial waste, synthesis (syn) gas, algae etc. in its scope.  “Bolt on” plants & “Brownfield projects” would also now be eligible to leverage their experience and improve their viability.

To promote multiple technologies and multiple feedstocks, preference would now be given to project proposals with new technologies and innovations in the sector.

The scheme aims to provide remunerative income to farmers for their agriculture residue, address environmental pollution, create local employment opportunities, and contribute to India's energy security and self-reliance. It also supports the development of advanced biofuel technologies and promotes the Make in India Mission. It also helps in achieving India’s ambitious target for net-zero GHG emissions by 2070.

The Government of India's commitment to promoting advanced biofuels through the Pradhan Mantri JI-VAN Yojana reflects its dedication to a sustainable and self-reliant energy sector.

Background:

The Government has been promoting blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) Programme wherein Public Sector Oil Marketing Companies (OMCs) sell petrol blended with ethanol. Under EBP Programme, the blending of ethanol with petrol increased from 38 crore litres in Ethanol Supply Year (ESY) 2013-14 to more than 500 crore litres in ESY 2022-23 with corresponding increase in blending percentage from 1.53% to 12.06%. The blending percentage has touched 15.83% in the month of July, 2024 and cumulative blending percentage has crossed 13% in the ongoing ESY 2023-24.

OMCs are on course to achieve the 20% blending target by the end of ESY 2025-26. It is estimated that over 1100 crore litres of ethanol will be required during ESY 2025-26 to achieve 20% blending for which 1750 crore litres of ethanol distillation capacity needs to be installed to meet the blending requirement and for other uses (potable, chemical, pharmaceutical etc.).

To meet the ethanol blending targets, the Government is also focusing on alternate sources like 2nd Generation (2G) Ethanol (Advanced biofuels).  Surplus biomass /agricultural waste which has cellulosic and lignocellulosic content, industrial waste etc. can be converted to ethanol using advanced biofuel technology.

To encourage 2G ethanol capacity in the country and attract investment in this sector, “Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana” was notified on 07.03.2019 for providing financial assistance to 2G Bio-ethanol projects.

Under the scheme, the first 2G Ethanol Project set up by Indian Oil Corporation Limited at Panipat, Haryana has been dedicated to the nation by the Hon’ble Prime Minister on 10th August 2022. The other 2G commercial projects being set up by BPCL, HPCL and NRL at Bargarh (Odisha), Bathinda (Punjab) and Numaligarh (Assam) respectively, are also nearing completion.

 

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