Timeline for disbursement of loan/completion of ethanol projects extended

Representational Image (Pixabay)

New Delhi: The Centre has extended the timeline for disbursement of loan/completion of ethanol projects up to September 30, 2022, in respect of all the schemes notified during 2018-2021, informed the Ministry of Consumer Affairs, Food & Public Distribution in a press release on April 5, 2022.

The decision has been taken to facilitate Project Proponents to complete the projects and to avail benefits of interest subvention.

“The timeline for disbursement of loan for ethanol projects is up to March/April 2022. However, due to the unavoidable and unfortunate situations 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 timeline for disbursement of loans under interest subvention schemes announced earlier during 2018-2021,” said the Ministry.

The Central Government notified different interest subvention schemes for sugar mills and distilleries during 2018-2021.

The Government is extending financial assistance in the form of interest subvention @ 6% per annum or 50% of the rate of interest charged by banks, whichever is lower, on the loans to be extended by banks for five years including a one-year moratorium, said the press release.

The Ministry informed that the ethanol distillation capacity of molasses-based distilleries was only 215 cr litres prior to 2014. However, in the past 7 years due to the policy changes made by the Government, the capacity of molasses-based distilleries has increased by one and a half times and is currently at 555 cr litres.

“Capacity of grain-based distilleries, which were 206 cr litres in 2013 increased to 280 cr litres. Thus, the total ethanol production capacity in the country has reached 835 crore litres. However, ethanol production capacities are required to be enhanced to about 1700 cr litres to achieve 20% blending by 2025. The decision for extension of timeline for ethanol projects would help in enhancing ethanol production capacities further,” the Ministry informed.

The Union Government has a fixed target of 10% blending of fuel-grade ethanol with petrol by 2022 and 20% blending by 2025. (Press Release)

Similar Articles

Comments

Comment

spot_img

Most Popular

You cannot copy content of this page

In Order to Strengthen Democracy, Citizens Should Bear the Cost of Impartial Journalism. Join 1-Rupee Campaign