Centre grants approval for 47 ethanol projects in Bihar for loan subsidies

A total of 47 projects from Bihar have been issued in-principle approvals for interest subvention on bank loans for establishing new or expanding existing distilleries, the government said on Wednesday.

Currently, 22 ethanol distilleries - 8 molasses-based and 14 grain-based - are operational in Bihar, Minister of State for Food Nimuben Jayatibhai Bambhaniya said in a written reply to the Lok Sabha.

The government is implementing the Ethanol Blended Petrol (EBP) Programme nationwide, with Oil Marketing Companies (OMCs) selling petrol blended with ethanol. Under the programme, the government has set a target of 20 per cent ethanol blending with petrol by 2025-26.

To boost ethanol production capacity and meet blending targets, the Centre has introduced various Ethanol Interest Subvention Schemes from 2018 to 2022.

Under these schemes, 47 projects from Bihar have received in-principle approvals, she said.

For each Ethanol Supply Year (ESY), OMCs invite bids from distilleries for ethanol purchase based on feedstock availability.

After receiving bids, OMCs allocate ethanol quantities from different feedstocks to be supplied by distilleries during a specific ESY. In cases of feedstock shortages, OMCs have shown flexibility in accepting feedstock change requests and issuing revised allocations.