Department of Food and Public Distribution notifies modified scheme for ethanol distillation


Department of Food and Public Distribution has come up with a modified scheme to increase the capacity of ethanol distillation to fulfil the requirement of  1st generation ethanol. It has modified and notified the scheme for providing financial assistance to the project proponents to enhance their ethanol distillation capacity. The scheme is also meant to setting up distilleries for producing 1st generation ethanol from cereals, sugar beet and sugarcane, etc. The scheme also aims for converting molasses based distilleries.

To avail assistance through this scheme, the distillaires and sugar mills owners or the entrepreneurs are required to submit an application in prescribed format to DPFD within thirty days from the notification date of the scheme on DFPD portal:

Chief Secretaries of the States and the Union Territories have been requested  to promote the scheme and encourage the entrepreneurs to participate in it. Interest subvention for five years from banks on 6 per cent per annum or 50 per cent of the interest charged by banks for setting up distilleries or the expansion of the existing distilleries shall be applied for the purpose.

The scheme aims at enhancing the production of ethanol and reducing the import dependency and realizing the Atmanirbhar Bharat goal. The scheme will also enhance farmers’ income as demand of their crops would increase and that would also assure them better prices.

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