With the aim of providing benefits to both ethanol manufacturing units and farmers, theGujaratgovernment will shortly announce ethanol production promotion policy, 2021. The is expected to announce a number of incentives to promote the policy.
The policy, which is expected to be announced before the forthcoming edition of Vibrant Gujarat Global Summit, aims to utilize, develop, and promote domestic feedstock of agri by-products with emphasis on maize for production of bio-ethanol, thereby increasingly substituting fossil fuels.
The goal of the policy is to enable availability of bio-ethanol in the market, thereby increasing its blending Percentage to 20% in petrol by 2025 from the current blending rate of 7.93%.
All farmers engaged in maize cultivation through traditional or hybridization method supplying the maize produce to ethanol manufacturing units will be eligible under the policy. Among the agri-products used as agri-input for ethanol production, maize comparatively needs less water, gives higher yield per hectare in a shorter period and can be grown in any season. With high starch content, maize has the potential as a grain feedstock for ethanol production. As much as 380 litres of ethanol can be produced from 1 metric tonne of maize.
The policy recognizes the need to provide incentives to eligible units in the ethanol manufacturing sector for the Growth of this sunrise sector. The government will provide incentives to set up new distilleries to produce ethanol and to install any method approved by Central Pollution Control Board (CPCB).