In a bid to harness the potential of renewable energy sources and promote sustainable development, the Indian Government introduced the Pradhan Mantri JI-VAN Yojana in March 2019. This visionary initiative aims to provide financial support to integrated bio-ethanol projects, particularly Second Generation (2G) ethanol projects, using lignocellulosic biomass and other renewable feedstocks. The program focuses on enhancing commercial viability and fostering research and development in the field of 2G ethanol production. Let’s delve deeper into the details and significance of this game-changing scheme.
Empowering the Green Revolution
The Pradhan Mantri JI-VAN Yojana is a crucial step towards reducing the country’s dependence on fossil fuels and curbing greenhouse gas emissions. With a total financial outlay of Rs. 1969.50 crore for the period from 2018-19 to 2023-24, the program aims to encourage the establishment of 2G ethanol projects across the nation.
Financial Assistance for Projects through Pradhan Mantri JI-VAN Yojana
Under this transformative scheme, eligible commercial projects can avail a maximum financial assistance of Rs. 150 crore, while demonstration projects can receive up to Rs. 15 crore. The support provided aims to make these projects economically viable and foster research and development to enhance ethanol production technologies.
Impactful Projects Approved through PM JI-VAN Yojana
Thanks to the Pradhan Mantri JI-VAN Yojana, a total of Rs. 880 crore financial assistance has been approved for both public and private sector Oil Marketing Companies (OMCs). Six commercial 2G bio-ethanol projects and two demonstration projects have been given the green light in states like Punjab, Haryana, Odisha, Assam, and Karnataka. The commercial project at Panipat (Haryana) has already been dedicated to the nation, while other projects in Bhatinda (Punjab), Bargarh (Odisha), and Numaligarh (Assam) are in advanced stages of construction.
Supporting Measures for 2G Ethanol Production
Apart from financial assistance through the PM JI-VAN Yojana, the government has taken various other steps to promote the establishment and success of 2G ethanol plants. Some of these measures include imposing additional excise duty on non-blended fuels, providing off-take assurance to private stakeholders through Ethanol Purchase Agreements (EPA), diversifying feedstock for 2G ethanol production, and introducing a separate price for 2G ethanol. Additionally, lowering the GST rate to 5% on ethanol for the Ethanol Blending Programme (EBP) has further boosted the adoption of this green fuel.
Conclusion
The Pradhan Mantri JI-VAN Yojana has emerged as a game-changer in India’s efforts towards sustainable and green energy. By incentivizing the establishment of 2G ethanol projects and supporting research and development, the scheme is paving the way for a cleaner, greener future. Through this visionary initiative, India is taking significant strides towards reducing carbon emissions, promoting energy security, and building a sustainable economy for generations to come. The successful implementation of this program will undoubtedly position India as a global leader in the race towards a cleaner and greener planet.
Source: PIB
