OIL & GASPolicy & Govt

Bihar becomes first state to have own ethanol policy for biofuel

The state industries minister, Syed Shahnawaz Hussain, on Friday launched the much-touted Ethanol Production Promotion Policy, 2021. The state cabinet approved it on Tuesday, making Bihar the first state in the country to have an ethanol promotion policy under the National Policy of Biofuels, 2018.

The state ethanol policy allows the extraction of ethanol, which was restricted to sugarcane, from surplus quantities of maize as well. An investor will get an additional government subsidy of 15% of the cost of plant and machinery up to a maximum of Rs5 crore, in addition to the existing incentives under the Bihar Industrial Investment Promotion Policy, 2016.

Speaking at the launch, Shahnawaz said a tripartite agreement between investors, banks and oil manufacturing companies will act as collateral for secured loans for establishing greenfield standalone ethanol manufacturing units in the state.

The industries minister also claimed that the policy would provide remunerative returns to investors and other stakeholders. “It will directly increase the income of farmers producing feedstock or raw material for ethanol manufacturing,” he said.

Under the new policy, financial assistance would be provided to greenfield standalone manufacturing units producing fuel-grade ethanol and supplying 100% of their ethanol to oil manufacturing companies under the Centre’s ethanol blending programme.

Source
ET Energy World
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