Context:  The Ministry of Petroleum & Natural Gas has given information about the Pradhan Mantri JI-VAN scheme in the Lok Sabha. About Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana:
  • It was notified in March 2019. 
  • Aims: To provide financial support to integrated bio-ethanol projects for setting up Second Generation (2G) ethanol projects by using lignocellulosic biomass and other renewable feedstocks.
  • Financial Outlay: Rs. 1969.50 crore for the period 2018-19 to 2023-24.
  • Financial Assistance: Rs. 150 crore per project for commercial projects and Rs. 15 crore per project for demonstration projects.
  • Nodal Ministry: Ministry of Petroleum and Natural Gas
Lignocellulosic Biomass
  • It refers to plant biomass that is composed of cellulose, hemicellulose, and lignin.
  • For example, cereal straw, bagasse, forest residues, and purpose-grown energy crops such as vegetative grasses.
What is Biofuels:
  • Biofuels are renewable fuels derived from organic sources, such as plants, agricultural and forest residues, algae, and animal waste.
Other Steps to Promote 2G Ethanol Plants:
  • Imposition of additional excise duty on non-blended fuels to encourage ethanol blending.
  • Off-take assurance by Oil Marketing Companies (OMCs) for 15 years to private stakeholders through Ethanol Purchase Agreements (EPA).
  • Diversification of feedstock for 2G ethanol production.
  • Separate price for 2G ethanol
  • A reduced GST rate of 5% on ethanol for the Ethanol Blending Programme (EBP).
News Source: PIB
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