Bihar has received in-principle approval for 47 projects aimed at setting up new distilleries or expanding existing ones, with interest subvention on bank loans, the government said on Wednesday.
Currently, 22 ethanol distilleries are operational in Bihar, including 8 molasses-based and 14 grain-based units, as reported by Minister of State for Food, Nimuben Jayatibhai Bambhaniya, in a written response to the Lok Sabha.
The government is actively implementing the Ethanol Blended Petrol (EBP) Programme nationwide, under which Oil Marketing Companies (OMCs) sell petrol blended with ethanol. The programme aims to achieve 20% ethanol blending with petrol by 2025-26.
To boost ethanol production capacity and meet blending targets, the Centre introduced several Ethanol Interest Subvention Schemes between 2018 and 2022. As a result, 47 projects in Bihar have received in-principle approval, the Minister stated.
Each Ethanol Supply Year (ESY), OMCs invite bids from distilleries for ethanol purchases based on feedstock availability. After evaluating the bids, OMCs allocate the ethanol quantities to be supplied by distilleries during the ESY. In case of feedstock shortages, OMCs offer flexibility by accepting requests for feedstock changes and issuing revised allocations.
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