The Scheme focuses to incentivize 2G Ethanol sector and support this nascent industry by creating a suitable ecosystem for setting up commercial projects and increasing Research Development in this area.
Benefits of the Scheme
Meeting Government of India vision of reducing import dependence by way of substituting fossil fuels with Biofuels
Achieving the GHG (Green House gas) emissions reduction targets through progressive blending substitution of fossil fuels.
Addressing environment concerns caused due to the burning of biomass/crop-residues and improve the health of citizens.
Improving farmer income by providing them remunerative income for their otherwise waste agriculture residues.
Creating rural and urban employment opportunities in 2G Ethanol projects and Biomass supply chain./p>
Contributing to Swachch Bharat Mission by Supporting the aggregation of non-food biofuel feedstocks such as waste biomass and urban waste./p>
Indigenizing of 2nd Generation Biomass to Ethanol technologies.
The government of India launched Ethanol Blended Petrol (EBP) programme in 2003 for undertaking blending of ethanol in Petrol to address environmental concerns due to fossil fuel burning, provide remuneration to farmers, subsidize crude imports and achieve forex savings.
Presently, EBP is being run in 21 States and 4 UTs of the country. Under the EBP programme, OMCs are to blend up to 10% of ethanol in Petrol. The present policy allows procurement of ethanol produced from molasses and non-food feedstock like celluloses and lignocelluloses material including petrochemical route.
