The Central Government vide notification dated 5th April, 2022 has amended the New Scheme for extending financial assistance to molasses based standalone distilleries for enhancement and augmentation of ethanol production capacity. The amendment provides that the applicant for loan under the scheme should get the loan disbursed from the bank by 30th September, 2022 failing which the in principle approval for the project will stand cancelled. Further, the project should be completed within two years from the date of disbursement of first instalment of loan from bank.
The scheme was introduced with a view to increase production of ethanol and its supply under Ethanol Blended with Petrol (EBP) Programme, especially in the surplus season and to extend financial assistance to molasses based standalone distilleries on lines similar to that extended to distilleries attached with sugar mills.
