Govt – Welfare oriented Govt schemes, their utility
Modified Ethanol Interest Subvention Scheme
-
- Introduced by the Government of India to support Cooperative Sugar Mills (CSMs).
- Allows mills to conversion of their existing sugarcane-based ethanol plants into multi-feedstock facilities.
- The goal is to ensure continuous operation and improve productivity throughout the year.
- Enables the use of maize and damaged food grains (DFG) alongside sugarcane.
- Scheme Benefits:
- Provides interest subvention of 6% per annum or 50% of bank interest rate for five years.
- Ensures year-round production by allowing the use of alternative raw materials.
- Improves financial viability and operational efficiency of CSMs.
Ethanol Production in India:
-
- Primarily dependent on sugarcane, which has a limited crushing season (4-5 months/year).
- The Ethanol Blended Petrol (EBP) Programme targets 20% ethanol blending by 2025.
- Impact on Ethanol Production Targets:
- Increased ethanol production will aid in energy security and fuel diversification.
