Cabinet approves”Pradhan Mantri Jl-VAN yojana”

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Pradhan Mantri Jl-VAN yojana

#The Cabinet Committee on Economic Affairs has approved the “Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana”

#It aims at providing financial support to Integrated Bioethanol Projects using lignocellulosic biomass and other renewable feedstock

#Lignocellulose refers to plant dry matter (biomass), is composed of cellulose, hemicellulose, and lignin

#The JI-VAN Yojana will be supported with total financial outlay of Rs.1969.50 crore for the period from 2018-19 to 2023-24.

(Pradhan Mantri Jl-VAN yojana)

Details

#Under this Yojana, 12 Commercial Scale and 10 demonstration scale Second Generation (2G) ethanol Projects will be provided a Viability Gap Funding (VGF) support in two phases:

a) Phase-I (2018-19 to 2022-23): wherein six commercial projects and five demonstration projects will be supported

b) Phase-II (2020-21 to 2023-24): wherein remaining six commercial projects and five demonstration projects will be supported

#The scheme focuses to incentivise 2G Ethanol sector and support this nascent industry by creating a suitable ecosystem for setting up commercial projects and increasing Research & Development in this area

(Pradhan Mantri Jl-VAN yojana)

It’s Relevance

#Ministry of Petroleum & Natural Gas has targeted to achieve 10% blending percentage of Ethanol in petrol by 2022

#But the highest ever ethanol procurement stands around 150 crore litres during the year 2017-18 which is sufficient for around 4.22% blending on Pan India basis.

#Therefore, an alternate route viz. Second Generation (2G) Ethanol from biomass and other wastes is being explored by MoP&NG to bridge the supply gap for Ethanol Blending Programme

#In this direction, “Pradhan Mantri JI-VAN Yojana” has been launched as a tool to create 2G Ethanol capacity in the country and attract investments in this new sector.

(Pradhan Mantri Jl-VAN yojana)

Background

#Government of India launched Ethanol Blended Petrol (EBP) programme in 2003 for undertaking blending of ethanol in Petrol to address environmental concerns due to fossil fuel burning, provide remuneration to farmers, subsidize crude imports and achieve forex savings

#Presently, EBP is being run in 21 States and 4 UTs of the country

#Under EBP programme, OMCs are to blend upto 10% of ethanol in Petrol

#The present policy allows procurement of ethanol produced from molasses and non-food feed stock like celluloses and lignocelluloses material including petrochemical route.

(Pradhan Mantri Jl-VAN yojana)

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