The Central Government, with a view to increase production of ethanol is providing soft loans up to 40% of the project cost to the sugar mills from Sugar Development Fund (SDF) for setting up ethanol projects. Production of alcohol or ethanol is linked to the production of molasses which is a by-product during production of sugar. Under Ethanol Blended Petrol (EBP) programme, the Central Government has already decided 5% blending at all India level, which can go up to 10% in a State. This information was given by the Minister of State for Consumer Affairs, Food and Public Distribution, Shri Raosaheb Patil Danve in a written reply in Lok Sabha today.
Last year, the Cabinet Committee on Economic Affairs (CCEA) has also approved Rs 6,600 crore interest-free loans to the sugar industry with interest subvention of 12% to be borne by the Sugar Development Fund.
Last year, the Cabinet Committee on Economic Affairs (CCEA) has also approved Rs 6,600 crore interest-free loans to the sugar industry with interest subvention of 12% to be borne by the Sugar Development Fund.
