Govt notifies modified scheme to produce 1G ethanol

The government on Thursday notified the modified scheme for extending financial assistance for producing “1st generation” (1G) ethanol from feed stocks such as cereals (rice, wheat, barley, corn and sorghum), sugarcane and sugar beet.

Under the scheme, the Centre will provide interest subvention to encourage the funding in this sector. According to the Ministry of Consumer Affairs, Food and Public Distribution, the scheme will attract an investment of about Rs 40,000 crore.

In a statement, the ministry said, “To achieve 20% blending by 2025 as well as to meet out the requirement of ethanol production capacity in the country, the Department of Food & Public Distribution has modified earlier scheme & notified the modified scheme for extending financial assistance to project proponents