CCEA approves Pradhan Mantri JI-VAN Yojana

March 2, 2019

The Cabinet Committee on Economic Affairs has approved the “Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana” under the Ministry of Petroleum & Natural Gas to provide financial support to Integrated Bioethanol Projects using lignocellulosic biomass and other renewable feedstock.

Pradhan Mantri JI-VAN

  • The scheme aims to incentivise 2G Ethanol sector and support this nascent industry by creating a suitable ecosystem for setting up commercial projects and increasing Research & Development in this area.
  • Under the scheme  12 Commercial Scale and 10 demonstration scale Second Generation (2G) ethanol Projects will be provided with a Viability Gap Funding (VGF) support in two phases:
  • Phase-I (2018-19 to 2022-23): Six commercial projects and five demonstration projects will be supported.
  • Phase-II (2020-21 to 2023-24): Six commercial projects and five demonstration projects will be supported.
  • The ethanol produced by the scheme beneficiaries will be mandatorily supplied to Oil Marketing Companies (OMCs) to further enhance the blending percentage under the ethanol blending programme.

Objectives of the Scheme

  • Accomplishing the Government of India vision to reduce import dependence by way of substituting fossil fuels with Biofuels.
  • Meeting of the GHG emissions reduction targets through progressive blending/ substitution of fossil fuels.
  • Addressing environmental concerns caused due to the burning of biomass/ crop residues & to improve the health of citizens.
  • Augmenting the farmer’s income by providing them remunerative income for their otherwise waste agriculture residues.
  • Creation of rural & urban employment opportunities in 2G Ethanol projects and Biomass supply chain.
  • Complementing the Swacch Bharat Mission by supporting the aggregation of non­food biofuel feedstocks such as waste biomass and urban waste.
  • Indigenizing of Second Generation Biomass to Ethanol technologies.

The government has set the target to achieve 10% blending percentage of Ethanol in petrol by 2022. The challenges like higher ethanol prices and simplification of the ethanol purchase system have become a hindrance. The highest ever ethanol procurement stood at around 150 crore litres during 2017-18 which is sufficient for around 4.22% blending on Pan India basis.
Hence to create 2G Ethanol capacity in the country and attract investments in this new sector Pradhan Mantri JI-VAN Yojana has been launched by the government.

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