Biofuel Policy

[pib] Pradhan Mantri Jl-VAN YojanaGovt. Schemes


Note4students

Mains Paper 2: Governance | Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

From UPSC perspective, the following things are important:

Prelims level: PM JIVAN Yojana

Mains level: Aim and particulars of the Scheme


News

  • The Cabinet Committee on Economic Affairs has approved the Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana.
  • It aims for providing financial support to Integrated Bio-ethanol Projects using lignocellulosic biomass and other renewable feedstock.

PM JI-VAN Scheme

  • Ministry of Petroleum & Natural Gas has targeted to achieve 10% blending percentage of Ethanol in petrol by 2022.
  • Therefore, an alternate route viz. Second Generation (2G) Ethanol from biomass and other wastes is being explored by MoP&NG to bridge the supply gap for EBP programme.
  • The PM JI-VAN Yojana is being launched as a tool to create 2G Ethanol capacity in the country and attract investments in this new sector.
  • Centre for High Technology (CHT), a technical body under the aegis of MoP&NG, will be the implementation Agency for the scheme.
  • The policy allows procurement of ethanol produced from molasses and non-food feed stock like celluloses and lignocelluloses material including petrochemical route.

Features of the Scheme

  1. The scheme focuses to incentivise 2G Ethanol sector and support this nascent industry by creating a suitable ecosystem for setting up commercial projects and increasing Research & Development in this area.
  2. The ethanol produced by the scheme beneficiaries will be mandatorily supplied to Oil Marketing Companies (OMCs) to further enhance the blending percentage under EBP Programme.
  3. Apart from supplementing the targets envisaged by the Government under EBP programme, the scheme will also have the following benefits:
  • Meeting Government of India vision of reducing import dependence by way of substituting fossil fuels with Biofuels.
  • Achieving the GHG emissions reduction targets through progressive blending/ substitution of fossil fuels.
  • Addressing environment concerns caused due to burning of biomass/ crop residues & improve health of citizens.
  • Improving farmer income by providing them remunerative income for their otherwise waste agriculture residues.
  • Creating rural & urban employment opportunities in 2G Ethanol projects and Biomass supply chain.
  • Contributing to Swacch Bharat Mission by supporting the aggregation of non­food biofuel feedstocks such as waste biomass and urban waste.
  • Indigenizing of Second Generation Biomass to Ethanol technologies.

Implementation

  1. The JI-VAN Yojana will be supported with total financial outlay of Rs.1969.50 crore for the period from 2018-19 to 2023-24.
  2. Under this project, 12 Commercial Scale and 10 demonstration scale Second Generation (2G) ethanol Projects will be provided a Viability Gap Funding (VGF) support in two phases:
  • Phase-I  (2018-19  to  2022-23)
  • Phase-II (2020-21 to 2023-24)

Back2Basics

Ethanol Blended Petrol (EBP) Programme

  1. Government of India launched Ethanol Blended Petrol (EBP) programme in 2003 for undertaking blending of ethanol in Petrol.
  2. It aimed to address environmental concerns due to fossil fuel burning, provide remuneration to farmers, subsidize crude imports and achieve forex savings.
  3. Presently, EBP is being run in 21 States and 4 UTs of the country.
  4. Under EBP programme, OMCs are to blend upto 10% of ethanol in Petrol.

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