Centre notifies scheme for cooperative sugar mills to convert ethanol plants to multi-feedstock
The Department of Food and Public Distribution notified a scheme on 7 March 2025 under the modified Ethanol Interest Subvention Scheme to help cooperative sugar mills convert sugarcane-based ethanol plants into multi-feedstock plants that can use maize and damaged food grains.
Summary
The Department of Food and Public Distribution notified a scheme on 7 March 2025 for cooperative sugar mills under the modified Ethanol Interest Subvention Scheme. It helps them convert existing sugarcane-based ethanol plants into multi-feedstock plants that can also use maize and damaged food grains (DFG), so they can produce ethanol year-round, since the cane crushing season lasts only 4â5 months. The Centre will bear interest subvention of 6% a year, or 50% of the bank's interest rate, whichever is lower, for five years including a one-year moratorium. The scheme supports the Ethanol Blended Petrol Programme's target of 20% blending by 2025.
Key facts
- Date
- 7 March 2025
- Notified by
- Department of Food and Public Distribution
- Beneficiaries
- Cooperative sugar mills
- Feedstocks added
- Maize, damaged food grains
- Subvention
- 6% a year or 50% of interest rate, whichever lower; 5 years incl. 1-year moratorium
- EBP target
- 20% ethanol blending by 2025
Practice MCQs 2 questions
The scheme notified on 7 March 2025 lets cooperative sugar mills convert their ethanol plants to also use which feedstocks?
Show answer
Correct answer: A â Maize and damaged food grains
The conversion lets cooperative sugar mills use grains like maize and damaged food grains (DFG), so ethanol can be produced year-round.
Consider the following statements about the scheme for cooperative sugar mills notified on 7 March 2025: 1. Interest subvention is 6% per annum or 50% of the rate of interest charged by banks, whichever is lower. 2. The subvention is for five years, including a one-year moratorium. 3. The scheme was notified by the Ministry of Petroleum and Natural Gas. Which of the statements given above are correct?
Show answer
Correct answer: A â 1 and 2 only
The subvention is 6% a year or 50% of the bank rate, whichever is lower, for five years including a one-year moratorium. The scheme was notified by the Department of Food and Public Distribution, under the modified Ethanol Interest Subvention Scheme.