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Pradhan Mantri JI-VAN Yojana
Context:
To stay ahead in the biofuels sector and attract more investment, the Union Cabinet has approved amendments to the “Pradhan Mantri JI-VAN Yojana,” which aims to provide financial support for advanced biofuel projects utilising lignocellulosic biomass and other renewable feedstocks.
More on News:
- The revised scheme extends the implementation timeline by five years, pushing it to 2028-29.
- It now includes advanced biofuels derived from lignocellulosic feedstocks such as agricultural and forestry residues, industrial waste, synthesis (syn) gas, and algae.
- Additionally, “bolt-on” plants and “brownfield projects” are now eligible to leverage their existing experience and enhance their viability.
About PM JI-VAN Yojana:
- In March 2019, the government launched the “Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana” to provide financial support for integrated bio-ethanol projects aimed at establishing Second Generation (2G) ethanol facilities in the country using lignocellulosic biomass and other renewable feedstocks. The scheme has a total financial outlay of Rs. 1969.50 crore for the period 2018-19 to 2023-24.
- Under the PM JI-VAN Yojana, a maximum financial assistance of Rs. 150 crore per project is available for commercial projects, while Rs. 15 crore per project is allocated for demonstration projects.
- The scheme has approved financial assistance of Rs. 880 crore to Public and Private Sector Oil Marketing Companies (OMCs) for six commercial 2G bio-ethanol projects located in Punjab, Haryana, Odisha, Assam, and Karnataka, as well as two demonstration projects in Haryana and Andhra Pradesh.
- In addition to financial support, other measures to promote 2G ethanol plants include the imposition of additional excise duty on non-blended fuels, 15-year offtake assurance by OMCs for private stakeholders through Ethanol Purchase Agreements (EPA), diversification of feedstocks for 2G ethanol production, a separate price for 2G ethanol, and a reduced GST rate of 5% on ethanol under the Ethanol Blending Programme (EBP).
