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In an effort to provide financial support to advanced biofuel projects and attract more investment, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the modified Pradhan Mantri JI-VAN Yojana. 

The scheme aims to provide remunerative income to farmers for their agriculture residue, address environmental pollution, create local employment opportunities and contribute to India's energy security and self-reliance.

The Ministry of Petroleum and Natural Gas informed that the modified scheme extends timeline for implementation of scheme by five years till 2028-29, and includes advanced biofuels produced from lignocellulosic feedstocks -- agricultural and forestry residues, industrial waste, synthesis gas and algae, etc.

“To promote multiple technologies and multiple feedstocks, preference would now be given to project proposals with new technologies and innovations in the sector,” said the government.

The PM Modi-led NDA government has been promoting blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) programme, wherein public sector oil marketing companies (OMCs) sell petrol blended with ethanol.

Under the programme, the blending of ethanol with petrol increased from 38 crore litres in ethanol supply year (ESY) 2013-14 to more than 500 crore litres in ESY 2022-23.

The government informed that the blending percentage touched 15.83 per cent in July and cumulative blending percentage has crossed 13 per cent in the ongoing ESY 2023-24.

According to the ministry, OMCs are on course to achieve the 20 per cent blending target by the end of ESY 2025-26.

It is estimated that over 1,100 crore litres of ethanol will be required during ESY 2025-26 to achieve 20 per cent blending, for which 1,750 crore litres of ethanol distillation capacity needs to be installed to meet the blending requirement and for other uses (potable, chemical and pharmaceutical, etc.).

To meet the ethanol blending targets, the Centre is also focusing on alternate sources like second generation (2G) ethanol (advanced biofuels).

“Surplus biomass agricultural waste which has cellulosic and lignocellulosic content and industrial waste, etc. can be converted to ethanol using advanced biofuel technology,” informed the ministry.

The Pradhan Mantri JI-VAN Yojana supports the development of advanced biofuel technologies and promotes the ‘Make in India’ mission, while helping the country achieve India’s ambitious target for net-zero GHG emissions by 2070 towards a sustainable and self-reliant energy sector.