Govt Approves Multi-Feedstock Ethanol Plants for Sugar Mills

The Government of India seeks to improve both the financial stability along with cash flow in Cooperative Sugar Mills. Through economic assistance Cooperative Sugar Mills (CSMs) receive from the Indian government they can convert their ethanol plants into multi-feedstock units. CSMs now have the ability to produce ethanol year-round through the conversion process which enables their utilization of maize combined with damaged food grains (DFG). The initiative supports the Ethanol Blended Petrol (EBP) Programme because it works toward achieving 20% ethanol mixing with petrol by 2025.

The program strives to boost both sustainability and financial solidity of Cooperative Sugar Mills through its implementation.

• Through the modified Ethanol Interest Subvention Scheme the Department of Food & Public Distribution within Government of India creates a scheme to help Cooperative Sugar Mills convert their present sugarcane-based feedstock ethanol plants to operate as multi-feedstock-based facilities.

• Equipment within these plants will allow maize use along with damaged food grains (DFG) to boost ethanol productivity.

• The modified Ethanol Interest Subvention Scheme of the Government provides financial support through an interest discount equal to 6% annually or 50% of actual bank interests. 

• A period of financial assistance extending to five years along with one year of moratorium relief will benefit sugar mills across this period.

Year-Round Operation for Increased Efficiency

As things stand today the sugarcane crushing period in India extends to only four or five months in each year thus decreasing sugar mill operational efficiency. Through this scheme Cooperative Sugar Mills (CSMs) can function throughout 12 months since they can utilize various materials for their processing activities. These ethanol facilities' conversion process will guarantee three key outcomes.

• Increased operational efficiency and productivity

• Sustainable financial viability

• Generate better financial returns through increased cash flow.

Ethanol Blending Program of India

• The Government of India continues working through the Ethanol Blended Petrol (EBP) Programme to decrease fossil fuel dependence while advocating for biofuel adoption. 

• The EBP Programme strives to introduce 20% ethanol merged with petrol throughout the country by the year 2025. 

• In July 2018 the government introduced various ethanol interest subvention schemes aimed at increasing the capacity for ethanol manufacturing.

• The initiative serves a dual purpose of reaching the ambitious blending targets together with job creation for rural areas and increased demand for maize and damaged food grains for farmers. 

• The scheme demonstrates the government’s dedication to developing sustainable energy systems combined with economic expansion.

The Cooperative Sugar Industry and its expected trends for development

• The revised Ethanol Interest Subvention Scheme will bring these following effects:

  • The cooperative sugar sector will benefit from long-term round-the-year ethanol production operations.

  • Expanding diverse raw materials usage will boost the operational success of cooperative sugar mills.

Benefits for India:

• Energy independence in India becomes possible through multi-feedstock ethanol production which decreases national dependence on imported fossil fuels while creating domestic energy security.

• The initiative activates new rural job opportunities which support farmers and expand the agricultural economy of rural areas.

Food Wastage Stats in India and Across the World:

• Each year India squanders 50 kilograms of food per person, which totals to approximately 68 million tons for its population.

• The annual worldwide food waste reaches 1.3 billion tons while causing substantial environmental and economical issues.

• Using damaged food grains to create ethanol helps control food losses by generating sustainable biofuels.

Conclusion

India's commitment to carbon emission reduction along with circular economic development will receive your contributions. The Government of India's strategic strategy will change ethanol production dynamics by maximizing resource use and boosting cooperative sugar mills' financial stability.