The Ministry of Consumer Affairs, Food & Public Distribution (MoCAF&PD) on March 07, 2025, notified regarding the scheme for Cooperative Sugar Mills for conversion of existing sugarcane-based feedstock ethanol plants to multi-feedstock based plants.
The Government of India has introduced a modified Ethanol Interest Subvention Scheme to support Cooperative Sugar Mills (CSMs) in converting their sugarcane-based ethanol plants into multi-feedstock plants. These plants can use grains like maize and damaged food grains (DFG), ensuring year-round operation and improving their efficiency and productivity. The government will subsidize interest rates on loans for this conversion at 6% per annum or 50% of the interest charged by banks, whichever is lower, for five years, including a one-year moratorium. This conversion will enhance financial viability, helping mills operate beyond the limited sugarcane crushing season. This initiative aligns with the Government's target of 20% ethanol blending with petrol by 2025 under the Ethanol Blended with Petrol (EBP) Programme.
[Release ID: 2109157]
