The Ministry of Consumer Affairs, Food & Public Distribution (MoCAF&PD) on March 06, 2025, notified the Scheme for extending financial assistance to Co-operative Sugar Mills (CSMs) for conversion of their existing sugarcane-based feedstock ethanol plants into multi-feedstock based plants to use grains like Maize and Damaged Food Grains (DFG) for enhancement and augmentation of ethanol production capacity.
The following have been stated:
• The opening of new window will be exclusively for Cooperative Sugar Mills across the country only for conversion of their existing sugarcane based feedstock ethanol plants into multi-feedstock based plants to use grains like Maize and DFG.
• The Window will only be for Cooperative Sugar Mills which have existing/running ethanol plant having valid Consent to Operate (CTO) and Petroleum and Explosives Safety Organization (PESO) license.
• Interest subvention @ 6% per annum or 50% of rate of interest charged by banks/National Cooperative Development Corporation (NCDC)/ Indian Renewable Energy Development Agency Limited (IREDA)/ Non-Banking Financial Companies (NBFCs)/any other financial institutions which are eligible for refinance from NABARD, whichever is lower, shall be borne by the Central Government for five years including one year moratorium against the loan availed by project proponents.
• For availing assistance under the Scheme, the Cooperative Sugar Mill would be required to submit an application-cum-proposal within 6 months from the date of Notification of the Scheme through online on the National Single Window System (NSWS) portal (http://www.nsws.gov.in/).
• After scrutinizing the applications-cum-proposals, DFPD will accord in-principle approval and recommend such approved proposals to the lending banks/financing institutions for considering sanction of loan. Banks/NCDC/IREDA/NBFCs/any other Financial Institutions which are eligible for re-finance from NABARD would be at liberty to sanction/release the loan as per their commercial norms/policies and in compliance with regulatory guidelines, including the restructuring guidelines, as notified by RBI from time to time.
• The concerned Cooperative sugar mills shall submit Consent to Operate duly issued by the Central Pollution Control Board/State Pollution Control Board/ Competent Authority of State Government. Cooperative Sugar Mills availing loan for conversion of existing single feed-stock based ethanol plant into multi-feedstock based plants shall submit a certificate duly verified by the concerned State Government Authority or the Chartered Engineer certifying that the conversion of the existing single feed distillery to multi feed ethanol distillery has been completed and production/enhanced production of ethanol has commenced and Zero Liquid Discharge (ZLD) has been achieved through the method proposed at the time of submitting application for such purpose. Any failure to submit such certificate shall lead to non reimbursement of interest subvention by the Central Government.
• The concerned Cooperative Sugar Mills shall submit Utilization Certificate for the sanctioned loan amount within 6 months of the completion of the project, duly certified by the Chartered Accountant, certifying that the loan amount has been utilized for the purpose specified in the Scheme.
[Notification No. 1(10)/2018-SP-I]
