Fresh applications invited from project proponents who have acquired land for ethanol project for financial assistance

The Department of Food and Public Distribution vide notification dated the 22nd April, 2022 has extended the due date for applying under 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

The Central Government has now decided to open a window for six months w.e.f. date of this Notification
under modified scheme for inviting fresh applications from those project proponents who have acquired land for ethanol project and obtained Environmental Clearance (EC) for enhancement of their existing ethanol distillation capacity or to set up new distillery for producing 1st Generation (1G) ethanol from feed stocks such as cereals (rice, wheat, barley, corn & sorghum), sugarcane (including sugar, sugar syrup, sugarcane juice, Bheavy molasses, C-heavy molasses), sugar beet etc. Eligibility assistance under the scheme shall be available to the entrepreneurs for:

1. Setting up grain based distilleries/expansion of existing grain based distilleries to produce ethanol. However, benefits of interest subvention scheme is to be extended to only those distilleries which are using or will be using dry milling technique to produce Dried Distillers Grains with Solubles (DDGS).
2. Setting up new molasses based distilleries/expansion of existing distilleries (whether attached to sugar mills or
   standalone distilleries) to produce ethanol and for installing any method approved by Central Pollution Control
   Board for achieving Zero Liquid Discharge (ZLD).
3. To set up new dual feed distilleries or to expand existing capacities of dual feed distilleries.
4. To convert existing molasses based distilleries (whether attached to sugar mills or standalone distilleries) to dual
   feed (molasses and grain/ or any other feed stock producing 1G Ethanol); and also to convert grain based distilleries to dual feed.
5. To set up new distilleries / expansion of existing distilleries to produce ethanol from other feed stocks producing 1G
   ethanol such as sugar beet, sorghum, cereals etc.
6. To install Molecular Sieve Dehydration (MSDH) column to convert rectified spirit to ethanol in the existing
   distilleries.