Pradhan Mantri Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran (JI-VAN) Yojana’ has been approved for providing financial support to the Integrated Bioethanol Projects.
The scheme aims to incentivise the Second Generation (2G) Ethanol sector and support the industry by creating a suitable ecosystem for setting up commercial projects and increasing R&D in this area.
The PM JI-VAN Yojana will be supported with the total financial outlay of Rs 1969.50 crore for the period 2018-19 to 2023-24.
Oil marketing companies (OMCs) will be essentially supplied to the ethanol produced by the beneficiaries to increase the composite percentage under the EBP program.
The Center for High Technology (CHT), a technical institution under the auspices of MoP & NG, will be the implementing agency of the scheme.
Ministry of Petroleum and Natural Gas has set a target of adding 10% ethanol blending to the petrol by 2022.
Central Government will provide a viability gap grant (VGF) assistance in 2 phases to the second generation (2G) ethanol projects at approximately 12 commercial scale and 10 demonstration scale.
Phase-I (2018-19 to 2022-23) : There Govt will support 6 commercial projects & 5 demonstration projects .
Phase-II (2020-21 to 2023-24) – There remaining 6 commercial projects and 5 demonstration projects will be supported.
Thus, Pradhan Mantri JI-VAN Scheme will encourage this industry to encourage R & D in the area by promoting 2G ethanol area by establishing commercial projects and creating ecosystem.
Aim of the Yojana / Profits through Yojana:
- Achieving the GHG emissions reduction targets through progressive blending/ substitution of fossil fuels.
- Indigenizing of Second Generation Biomass to Ethanol technologies.
- To achieve the GHG emission reduction targets of Paris Climate Conference by progressive blending / substitution of fossil fuels.
- Make a contribution to the Swachh Bharat Mission by supporting the aggregation of non-food biofuel feedstocks like biomass and urban waste.
- Addressing environment concerns caused due to burning of biomass/ crop residues & improve health of citizens.
- In order to address environment concerns which are caused due to burning of biomass, crop residues and improving health of the citizens.
- Creating rural & urban employment opportunities in Ethanol projects and Biomass supply chain.
About India’s biofuel capability:
India produces about 170 million tonnes of agriculture waste. If we use this for ethanol production – means easily ramping up to 250 million tonnes per year, to produce between 31-47 billion litres of ethanol by 2020, a radical increase from the current production of 2 billion litres. This will lead to a huge reduction in stubble burning because of an economic incentive available to remove and give the crop waste to biofuel plants.
Further, sewage treatment plants (STPs) hold a lot of promise. India generates around 70 billion litres of waste water every day, which is expected to double in the next 15 years according to the McKinsey Global Institute. By building biogas generation and upgrading facilities at the STP sites, the output can potentially substitute 350 million litres of diesel, 2.3 gigawatt hours of natural gas fired power and over 8 million LPG cylinders of 14.2kg each.
The new advanced bio-refinery boasts integrated production capability of one million litres a year of ethanol from a variety of biomass. The plant, located in Pune, India, is built on Praj’s proprietary platform technology, enfinity, which allows the manufacture of ethanol from a range of agri-waste.
We have started with some encouraging pilots for biofuel-driven buses in cities like Nagpur, where the government has allowed special purpose vehicles to own and operate these buses along with the plants and the depots required to fuel the buses.
Challenges – Requirement 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 during 2017-18.
This is sufficient for around 4.22% blending on Pan India basis. Alternatively, MoP&NG has started exploring 2G Ethanol generations 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.
It is a good time for policymakers to review and align policy intent with available options to enable achieving the stated objectives of building a sustainable transport sector with varied clean fuel solutions for various vehicles—from large buses to scooters. With a holistic approach, which includes the full potential of biofuels for vehicles, we will be able to achieve our dream of creating an environmentally and economically sustainable transport sector.