In a massive push for the India’s nascent ethanol industry, the government has given in-principle approval for 422 ethanol projects which could add an annual production capacity of as much as 1,675 crore litres, reports Economic Times.
The 422 projects are likely to bring an investment of as much as Rs 41,000 crore, and would be provided soft loans from banks on easier terms. These projects would help the nation boost the ethanol blending in petrol and bring down the India’s dependency on imported crude oil.
The projects will be based across 22 states in the country. Of these, 201 proposals are from grain-based distilleries, while 141 are from distilleries that use both, grain and molasses as feedstock.
It should be noted that in the ongoing year, the government has set a target to achieve 8.5 per cent ethanol blending in petrol. This will then be elevated to 10 per cent by the end of next year, and to 20 per cent by 2025.
To achieve the 20 per cent blending target, the oil marketing companies are likely to need as much as 1,000 crore litres of ethanol.