Government of India has lowered GST for Ethanol meant for blending purpose under Ethanol Blending Program to 5% from earlier 18%.
As per the national policy on Biofuel 2018, government has set target of 20% blending of petrol by 2030.
NITI Aayog, think tank of India in collaboration with Ministry of Petroleum & Natural Gas has prepared a roadmap for ethanol blending in India 2020-2025.
Inorder to make the program outcome a success, a scheme named PM JIVAN yojana has been launch ( Pradhanmantri Jaiv Indhan Vatavaran Anukool Fasal Awashesh Nivaran)
The scheme emphasis on usage of lignocellulosic biomass and other renewable resources as biofuel.
Generations of Ethanol
1st Generation- Edible biomass (Sugarbeet, Sugarcan, Wheat, Corns)
2nd Generation- Non Edible biomass (wood, straw, grass, waste from agricultural)
3rd Generation- Algal biomass (Macro algae & micro algae)
4th Generation- break through methods (pyrolysis, solar to fuel, gasification, engineered algae)
As per the commitment, government is trying to reduce dependency on non renewable resources and moving towards 2nd generation ethanol production and blending with set target of 10% ethanol blending by 2022 and 20% blending by 2030.
The entities enrolled under the scheme for ethanol production will supply produced ethanol to oil marketing companies for blending with petrol.
The scheme is implemented by Centre for High Technology under Ministry of Petroleum and Natural Gas.
The project under the scheme are funded through Viability Gap Funding and the scheme is executed in two phases.
Phase I (2018-19 to 2022-23) in which 6 commercial and 5 demonstration scale projects on 2nd Generation ethanol production will be funded.
Phase II (2021-22 to 2023-24) in which 6 commercial and 5 demonstration scale projects on 2nd Generation ethanol production will be funded.
Total finance for the scheme is Rs 1,970 crores
- 1,800 crores to be allocated to 12 commercial projects in phase manner
- 150 crores to be allocated to 10 demonstration scale projects
- 20 crores for administrative expenses of implementing agency.
India trying to be pollution free and free from trap of non renewable energy sector and become a clean and pollution free nation.
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