New Delhi: In a major boost to India's ethanol blending programme, the Government of India has approved ₹4,687 crore as interest subsidy for eligible ethanol projects under various support schemes. The announcement was made by Minister of State for Petroleum and Natural Gas Suresh Gopi in Parliament on Monday.
Under the government's ethanol promotion schemes, financial assistance is provided through interest subvention of 6% or 50% of the interest rate charged by banks, whichever is lower, for a period of five years. The benefit is available on loans taken to establish new distilleries or expand existing ethanol production facilities, helping sugar mills and distilleries increase ethanol manufacturing capacity.
The minister informed Parliament that since 2022-23, the government has released ₹2,075 crore to the National Bank for Agriculture and Rural Development (NABARD), the nodal agency responsible for disbursing the interest subsidy under the scheme. The financial support is aimed at accelerating investments in ethanol production, strengthening India's biofuel infrastructure, and supporting the country's target of higher ethanol blending in petrol.
Separately, the minister also stated that 50% of the upcoming 1.75 million tonne strategic petroleum reserve being developed by Oil and Natural Gas Corporation> (ONGC) at Mangaluru will be reserved for strategic national use, enhancing India's energy security alongside its renewable fuel initiatives
