Cabinet approves Amendment in PM JIVAN Yojana for providing financial support to Advanced Biofuel Projects

 Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the modified Pradhan Mantri JI-VAN Yojana to keep pace with the latest developments in the field of biofuels and to attract more investment.

The modified scheme extends the timeline for implementation of the scheme by five years i.e. till 2028-29 and includes advanced biofuels produced from lignocellulosic feedstocks i.e. agricultural and forestry residues, industrial waste, synthesis (syn) gas, algae, etc. in its scope. 

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The scheme aims to provide remunerative income to farmers for their agriculture residue, address environmental pollution, create local employment opportunities, and contribute to India's energy security and self-reliance.

It also supports the development of advanced biofuel technologies and promotes the Make in India Mission. It also helps in achieving India’s ambitious target for net-zero GHG emissions by 2070.

The Government has been promoting the blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) Programme wherein Public Sector Oil Marketing Companies (OMCs) sell petrol blended with ethanol.

Under EBP Programme, the blending of ethanol with petrol increased from 38 crore liters in Ethanol Supply Year (ESY) 2013-14 to more than 500 crore liters in ESY 2022-23 with a corresponding increase in blending percentage from 1.53% to 12.06%.

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OMCs are on course to achieve the 20% blending target by the end of ESY 2025-26. It is estimated that over 1100 crore litres of ethanol will be required during ESY 2025-26 to achieve 20% blending for which 1750 crore liters of ethanol distillation capacity needs to be installed to meet the blending requirement and for other uses (potable, chemical, pharmaceutical, etc.

Under the scheme, the first 2G Ethanol Project set up by Indian Oil Corporation Limited at Panipat, Haryana has been dedicated to the nation by the Hon’ble Prime Minister on 10th August 2022.

The other 2G commercial projects being set up by BPCL, HPCL, and NRL at Bargarh (Odisha), Bathinda (Punjab), and Numaligarh (Assam) respectively, are also nearing completion.

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