Lok Sabha Question No. 1201 (UNSTARRED), answered on 2021-02-09
Subject: Enhancing Ethanol Distillation
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Midhun Reddy, Kuruva Gorantla Madhav, Beesetti  Venkata Satyavathi, Kotagiri Sridhar, M V V Satyanarayana, Pratima Bhoumik, Bhagwanth Khuba

## GOVERNMENT  OF INDIA

## MINISTRY OF CONSUMER  AFFAIRS, FOOD & PUBLIC  OISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED  OUESTION NO. I2OI

TO BE ANSWERED  ON 9tt Februaryr 202{

## ENHANCING  ETHANOL DISTILLATION

1201.

SHRI I'.V. MIDHUN REDDY: SHR! I(URUVA GORANTLA MADHAV: DR. BEESETT! VENKATA SATYAVATHI: SHRI SRIDHAR KOTAGIRI: SHRI II/I.V.V. SATYANARAYANA: SHR! RHAGWANTH KHUBA: MS. PRATIMA  BHOUMIK:

Will the  Minister of  GONSUMER AFFAIRS, FOOD AND PUBLIC

DISTRIBUTIoN 31{sftrirl rn-i, urq-+ eltr srftrfrr  frd{ur  d* be pleased to state:

- (a) whether  the Govemment has recently notified the modified scheme to enhance ethanol distillation capacity in the country for producing  {st Generation (lG) e,thanol  from feed stocks such as cereals (rice, wheatr barley'
- corn & sorghum)r  sugarcane, sugar beet etc;
- (b)  if so, the details thereof  along with the current productaon  of { st Generation ethanol  in the country at presentl
- (c) whether ther Government has advised the State Governments to promote this scheme;
- (d)  if sor whether  the State Govemments  are being given any incentive to promote this scheme; and
- (e)
- lf so, the details thereofi?

## AN SWE R

MINTSTER  OF STATE FOR MINTSTRY OF CONSUMER  AFFAIRS' FOOD & PUBLIG DISTRIBUTION

(SHRI DANVE RAOSA}IEB DADARAO)

for extending financial t  of ethanol distillation (a) & (b): Govemment has notified scheme assistance to project proponents for enhancemen capacity or to set up distitleries  for producing {st Generat:on ({G) ethanol from feed StoCks Such as cereals  (ricer wheatr barleyr com & sorghum)t Sugarcanet sugar beet etc. \,ide notification dated {4.o{.2O21. Under the scheme' Govemment would bear interest subvention  for five years, including one year moratorium, against the loan availed by project proponents  from banks @ 67o perannumorSooy'ooftherateofinterestchargedbybanks,whicheverislower' ior settlng up of new distilleries;  expansion  of existing dastilleries;  converting existing  distilleries  to dual feedstockl  setting up of new dual feed distilleries; expansaon  of existing dual feed distilteries;  and installation of Motecular sieve Dehydration  (MSDH) column etc.

,.......21-

During previous Ethanol Supply Year (ESY) 2O19-2O (DecemberNovember), about {73 crore litre of ethanol was supplied by sugar mills and distilleries to Oil Marketing Gompanies  (OMGs). ln the current EfSY 2O2O-21  , against Letter of lntent (Lo!) quantity ol 324.69 crore litre and contracted quantity of 269.88 crore litre, about 48.73 crore litre of ethanol has been supplied to OMGs, as on 01.O2.2O2'1.

(c)  to (e): State Governments/  UTs have been advised to promote the scheme to the entrepreneurs and encourage them to participate in the scheme so that the target set by the Government  could be achieved well within the timeline. State Governments  have also been requested to facilitate  entrepreneurs in arranging land for the proiectr get{ing early environment  clearance etc. in setting up of distilleries. !n this regard, webinars/meetings  have been organised with State Governments/ UTs, industry,  concemed depadments of  Central Government and other stakeholders.

As stated in reply to part (a) & (b) above, interest  subvention  would be provided to proiect  proponents, who will participate in the scheme.