Scheme for extending Financial Assistance to Sugar Mills for Enhancement and Augmentation of Ethanol Production Capacity

Jul 20, 2018 | by Avantis RegTech Legal Research Team

The Central Government, with a view to increase production of ethanol and its supply under Ethanol Blended with Petrol (EBP) Programme, especially in the surplus seasons and thereby to improve the liquidity position of the sugar mills enabling them to clear cane price arrears of the farmers, has notified the Scheme for extending financial assistance to sugar mills for enhancement and augmentation of ethanol production capacity.

Assistance under the scheme will be utilized by the sugar mills;

(i)     For increasing ethanol production by enhancing the number of working days of existing distilleries in a year on installation of new incineration boilers.

(ii)   For augmentation of ethanol production capacity by setting up of new distilleries attached with their sugar mills.

Existing distilleries attached with the sugar mills are eligible for assistance to install new incineration boilers. All the sugar mills are eligible for assistance to set up new distilleries. Preference will be given to sugar mills which do not have existing distillery.

The sugar mills which desire to either install new incineration boiler in their existing distilleries or to set up new distillery plant, would be required to submit an application-cum proposal in the prescribed Proforma (Annexure) to the Chief Director (sugar), Directorate of Sugar and Vegetable Oils, Department of Food & Public Distribution (DFPD), Krishi Bhawan, New Delhi within 30 days from the date of notification of the scheme.

The Scheme also gives information for:

·         Assistance under the Scheme,

·         Modalities of the Scheme,

·         Modalities of payment of interest subvention,

·         Project Completion Certificate,

·         Utilization Certificate.

[S.O. 3523(E)]



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