Lok Sabha Question No. 632 (UNSTARRED), answered on 2023-12-06
Subject: Grain based Ethanol Plants
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Ramesh Chandra Majhi

## GOVERNMENT OF INDIA

## INISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO.632 TO BE ANSWERED ON 6TH DECEMBER 1 2023

## GRAIN  BASED ETHANOL  PLANTS

## 632.  SHRI RAMESH CHANDRA MAJHI:

Will the Minister of CONSUMER  AFFAIRS, FOOD  AND PUBLIC DISTRIBUTION  avsM qu+, @m dR tIT&rfqq fRaor THt be  pleased to  state:

- (a) whether the Government has drafted any dedicated policy for grain-
- based ethanol plants  in India;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government is proposing to set  up an ethanol plant in Odisha;
- (d) if so, the details thereof and if not, the reasons therefor; and
- (e) the details of the number of grain-based ethanol plants in the country along with  its capacities?

ANSWER INISTER OF STATE FOR MINISTRY OF RURAL DEVELOPMENT AND CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SADHVI NIRANJAN JYOTI)

- (a) & (b): The National Bio-fuel Policy, 2018 allows production of ethanol from sugarcane juice, sugar containing materials like  sugar beet, sweet sorghum, starch  containing  material  like  corn,  cassava, damaged food grains like wheat, broken rice, rotten potatoes (unfit for human consumption). Further, the policy  also allows use of surplus food grains for production of ethanol  under Ethanol blended with  petrol  (EBP) Programme with  the approval of National Bio-fuel Coordination Committee (NBCC). The NBCC in November 2020 has allowed the production of ethanol from rice available with Fei and from maize for blending with petrol under EBP progranlnles

In order to enhance the ethanol production capacity in the country under EBP Programme, the  Central Government has notified  various ethanol interest  subvention schemes from July 2018 onwards. The scheme was further modified in January 2021 to include grain based distilleries of the country apart from molasses based distilleries for  production of lst Generation (IG) ethanol from feed stocks such as cereals (rice, wheat, barley, corn  &  sorghum), sugarcane, sugar beet  etc.  Further, another ethanol interest subvention scheme was notified for  the distilleries including  for grain based distilleries in April  2022 for a period of one year.

Under the  ethanol interest subvention schemes, Government is facilitating  entrepreneurs to set up new distilleries  (molasses based, grainbased and dual-feed based) or expansion of existing  distilleries  (molasses based, grain-based and dual-feed based) throughout the country. Interest subvention @ 6% per annum or  500/, of  rate  of  interest charged by banks/financial institutions, whichever is lower, on the loans to  be extended by banks/financial institutions shall be borne by the Central Government for five  years including  one-year moratorium.

(c)  &  (d): The Central Government does not set  up ethanol  plants on its own in any part of the  country including in Odisha. However, the entrepreneurs are free to set up ethanol plants in any part of the country depending upon the techno-economic viability  of the project.

As on date, a total  of 29 Grain based ethanol projects from Odisha have been approved under various Interest subvention schemes of Department of Food & Public Distribution (DFPD). Currently, there are 3 grain based distilleries in Odisha with an estimated ethanol production capacity of about 4.5 crore litres  per annum.

- (e): Currently, there are 155 grain based distilleries in the country with an estimated ethanol production capacity of about 505 crore litres.

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