a. Financial Assistance to Sugar Mills for Augmentation of Ethanol Production Capacity.
With a view to increase production of ethanol and its supply under Ethanol Blended with Petrol (EBP) Programme, especially in the surplus season and thereby to improve the liquidity position of the sugar mills, enabling them to clear cane price arrears of the farmers, the Central Government has notified the following schemes:
- (i) Scheme for extending Financial Assistance to Sugar Mills for Enhancement and Augmentation of Ethanol Production Capacity-2018-19
- (ii) Schemes for extending Financial Assistance to Sugar mills & Molasses Based standalone distilleries for enhancement .and augmentation of ethanol production capacity – 2018-19
- (iii) Scheme for extending financial assistance to project proponents for enhancement of their ethanol distillation capacity or to set up distilleries for producing 1st Generation (1G) ethanol from feed stocks such as cereals (rice, wheat, barley, corn & sorghum), sugarcane, sugar beet, etc. – 2021
Department of Food and Public Distribution, Ministry of Consumer Affairs and Food & Public Distribution is the nodal Department for the above mentioned Schemes. NABARD has been appointed as the Nodal Agency for channelizing interest subvention under these flagship programme.
Interest Subvention @ 6% per annum or 50% of the rate of interest, whichever is lower, on the loans to be extended by the Financial Institutions shall be borne by the Government of India for five years only, including one year moratorium period.
As on date, DFPD has accorded in-principle approval to 1141 Ethanol Projects under the scheme. Out of these NABARD has received claims in respect of 242 projects amounting to Rs.930.90 Cr and the same is released.
The cumulative position of interest subvention released as at the end of each year since inception, is given in table:
| Year |
No. of units (In Quarters) |
Interest subvention released (Rs.cr.) |
| 2020-21 |
195 |
65.9 |
| 2021-22 |
315 |
132.39 |
| 2022-23 |
743 |
240.35 |
| 2023-24 |
917 |
492.26 |
| Total |
2170 |
930.90 |
Cumulative Data:
| As on date Total Sugar Mill |
242 |
| Total Fund Released |
Rs.930.90 Cr |
| As on Date |
31st March 2024 |
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