The Ministry of Consumer Affairs, Food & Public Distribution on 5th April 2022 has decided to extend the time line for disbursement of loans upto 30th September, 2022 in respect of all the schemes notified during 2018-2021.
Under the schemes, the timeline for disbursement of loan for ethanol projects is up to March/April, 2022. However, due to unavoidable and unfortunate situation caused by COVID-19, project proponents were unable to adhere to the time limit for disbursement of loan from Banks/ Financial institutions and unable to complete their projects in a given time frame. Therefore, there is a need to extend the time line for disbursement of loans under interest subvention schemes announced earlier during 2018-2021.
Central Government 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, notified different interest subvention schemes for sugar mills and distilleries during 2018-2021. Government is extending financial assistance in the form of interest subvention @ 6% per annum or 50% of rate of interest charged by banks, whichever is lower, on the loans to be extended by banks for five years including one-year moratorium.
Further in order to boost agricultural economy, to reduce dependence on imported fossil fuel, to save foreign exchange on account of crude oil import bill & to reduce the air pollution, Government has fixed target of 10% blending of fuel grade ethanol with petrol by 2022 & 20% blending by 2025.
