Cabinet Committee on Economic Affairs (CCEA) has approved Pradhan Mantri JI-VAN Yojana or Jaiv Indhan Vatavaran Anukool Fasal Awashesh Nivaran Yojna 2021. PM JI-VAN Scheme is going to provide financial assistance to integrated Bio-ethanol projects by the use of lignocellulosic biomass and other renewable feedstock. The financial implication of JI-VAN Yojana is that the central govt. will support this scheme with total financial outlay of Rs. 1959.50 crore for the 2018-19 to 2023-24 duration.
Out of this amount, Rs. 1800 crore is being allocated to support 12 commercial projects. In addition to this, Rs. 150 cr would be provided to support demonstration projects and remaining Rs. 9.50 cr to be given to Centre for High Technology (CHT) as administrative charges.
Ministry of Petroleum & Natural Gas has set a target to get 10% blending percentage of Ethanol in petrol by FY 2022.
Pradhan Mantri JI-VAN Scheme 2021 – Phases & Benefits
Under this Pradhan Mantri JI-VAN Yojana, around 12 commercial scale and 10 demonstration scale second generation (2G) ethanol projects would be provided a Viability Gap Funding (VGF) support in 2 phases:-
Pradhan Mantri JI-VAN Yojana Phases
- Phase-I (2018-19 to 2022-23) – Here 6 commercial projects & 5 demonstration projects would be supported.
- Phase-II (2020-21 to 2023-24) – Here remaining 6 commercial projects and 5 demonstration projects will be supported.
Pradhan Mantri JI-VAN Scheme will focus on incentivizing 2G Ethanol sector and support this industry by creating suitable ecosystem to setup commercial projects and increase R&D in that area.
Pradhan Mantri JI-VAN Yojana Benefits
In addition to supplement the target set by the government under the EBP programme, PM JI-VAN Scheme will have the following benefits:-
- To meet vision of the central govt. to reduce import dependence by substituting fossil fuels with biofuels.
- To achieve the GHG emission reduction targets by progressive blending / substitution of fossil fuels.
- In order to address environment concerns which are caused due to burning of biomass, crop residues and improving health of the citizens.
- To raise the farmer’s income by ensuring adequate income for their waste agricultural residues.
- Creation of rural and urban employment opportunities in 2G Ethanol projects along with biomass supply chain.
- Make a contribution to the Swachh Bharat Mission by supporting the aggregation of non-food biofuel feedstocks like biomass and urban waste.
- Indigenization of 2nd Generation Biomass to Ethanol technologies.
The ethanol, which is going to be produced by the Pradhan Mantri JI-VAN Scheme beneficiaries would be supplied to the Oil Marketing Companies (OMCs) to further enhance the blending percentage under the EBP programme.
Need to Launch Pradhan Mantri JI-VAN Scheme
Central govt. has target to achieve 10% blending percentage of Ethanol in Petrol by 2022. Various efforts like higher ethanol prices, simplification of ethanol purchase system have been made. But still the highest ever ethanol procurement stands at around 150 cr ltrs ethanol. This is sufficient for around 4.22% blending on Pan India basis. Alternatively, MoP&NG has started exploring 2G Ethanol generation from biomass and other wastes to bridge the supply gap under EBP programme. So, Pradhan Mantri JI-VAN Yojana has been launched to create 2G Ethanol capacity in the country and attract investments for this new sector.
Center for High Technology which is a technical body under MoP&NG would be the primary implementation agency of PM JI-VAN Scheme 2021. All the project developers who are interested to avail scheme benefits shall have to submit their proposal for review by Scientific Advisory Committee. All the projects which are recommended by SAC are going to be approved by the Steering Committee.
Background of Ethanol Blended Petrol (EBP) Programme
The Union govt. of India has launched EBP programme in FY 2003 to undertake the blending of ethanol in petrol to address environmental concerns. These concerns includes burning of fossil fuels, giving renumeration to farmers, subsidization of crude imports and to achieve forex savings.
Currently, EBP is running in 21 states and 4 UTs across the country. Under EBP programme, OMCs have to blend 10% of ethanol in Petrol. The current policy allows the procurement of ethanol which is produced from molasses and non-feed stock like celluloses and lignocelluloses material including petrochemical route.