TFP Bureau, New Delhi, August 9, 2024: In a significant move to advance India’s biofuel sector, the Union Cabinet, led by Prime Minister Shri Narendra Modi, has approved an amendment to the Pradhan Mantri JI-VAN Yojana. This revision is designed to keep pace with the latest developments in biofuel technology and attract increased investment in the sector.
The modified scheme, which extends the implementation timeline by five years to 2028-29, now includes advanced biofuels produced from lignocellulosic feedstocks such as agricultural and forestry residues, industrial waste, synthesis gas, algae, and more. The amendment also expands eligibility to “Bolt on” plants and “Brownfield projects,” allowing these projects to leverage their existing experience and enhance their viability.
To encourage innovation, the revised scheme will prioritize project proposals that introduce new technologies and use diverse feedstocks. This strategic focus aims to support the development of cutting-edge biofuel technologies, contribute to India’s energy security, and align with the Make in India mission. Additionally, the scheme aims to provide farmers with a remunerative income for their agricultural residues, address environmental pollution, and create local employment opportunities.
The Government of India’s commitment to advancing biofuels under the Pradhan Mantri JI-VAN Yojana is also a critical component of its broader goal to achieve net-zero greenhouse gas (GHG) emissions by 2070.
**Background and Progress:**
The Pradhan Mantri JI-VAN Yojana, originally notified on March 7, 2019, was established to provide financial assistance to 2nd Generation (2G) bio-ethanol projects. These projects convert surplus biomass, agricultural waste, and industrial waste into ethanol, an essential component of the Ethanol Blended Petrol (EBP) Programme.
The EBP Programme, which promotes the blending of ethanol with petrol, has seen remarkable progress. Ethanol blending increased from 1.53% in 2013-14 to 12.06% in 2022-23, with the percentage reaching 15.83% in July 2024. The government is on track to achieve a 20% blending target by the end of the 2025-26 ethanol supply year (ESY), with an estimated requirement of over 1,100 crore liters of ethanol.
The first 2G ethanol project, set up by Indian Oil Corporation Limited in Panipat, Haryana, was dedicated to the nation by Prime Minister Modi on August 10, 2022. Other commercial 2G projects by BPCL, HPCL, and NRL in Odisha, Punjab, and Assam are also nearing completion.
The Cabinet’s approval of these amendments underlines the government’s dedication to creating a sustainable, self-reliant energy sector, while simultaneously driving economic growth and environmental stewardship in India.
