Govt notifies modified scheme on ethanol production to assist distilleries

The government on Thursday notified a “modified” scheme to provide financial assistance to distilleries producing first-generation ethanol from feedstocks, including cereals.

The assistance will be given for capacity expansion, setting up of new ethanol distilleries or converting molasses-based distilleries to dual feedstock.

In a statement, the government said sugar mills, distilleries or entrepreneurs are required to submit an application in a prescribed proforma to the Union Food Ministry within 30 days from the notification for availing the assistance under the scheme.

Sugarcane and ethanol are produced mainly in three states — Uttar Pradesh, Maharashtra and Karnataka. Transporting ethanol to far-flung states from these three states involves huge transportation cost, it said.