Prime Minister Modi Approves New Biofuel Plan to Boost Investment and Innovation
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a modified Pradhan Mantri JI-VAN Yojana to attract more investment in the biofuel sector. This decision aims to keep up with the latest developments in biofuels and extend the scheme’s implementation timeline by five years, until 2028-29.
The updated scheme now includes advanced biofuels produced from lignocellulosic feedstocks such as agricultural and forestry residues, industrial waste, synthesis gas, and algae. It also allows ‘bolt-on’ plants and ‘brownfield projects’ to enhance their viability.
To promote multiple technologies and feedstocks, preference will be given to projects featuring new technologies and innovations. The scheme aims to provide income to farmers for their agricultural residue, reduce environmental pollution, create local jobs, and contribute to India’s energy security and self-reliance. It also supports the development of advanced biofuel technologies and promotes the Make in India Mission, helping India achieve its net-zero GHG emissions target by 2070.
The government has been promoting ethanol blending with petrol under the Ethanol Blended Petrol (EBP) Programme. Ethanol blending increased from 38 crore liters in 2013-14 to over 500 crore liters in 2022-23, with a blending percentage rising from 1.53% to 12.06%. The blending percentage reached 15.83% in July 2024, and the cumulative blending percentage has surpassed 13% in the ongoing 2023-24 year. The government aims to achieve a 20% blending target by 2025-26, requiring over 1,100 crore liters of ethanol and 1,750 crore liters of ethanol distillation capacity.
To meet these targets, the government focuses on alternative sources like 2nd Generation (2G) Ethanol. The Pradhan Mantri JI-VAN Yojana, notified on March 7, 2019, provides financial assistance to 2G bio-ethanol projects. The first 2G Ethanol Project by Indian Oil Corporation Limited in Panipat, Haryana, was dedicated to the nation by Prime Minister Modi on August 10, 2022. Other 2G projects by BPCL, HPCL, and NRL in Odisha, Punjab, and Assam are nearing completion.
Doubts Revealed
Prime Minister Modi -: Prime Minister Modi is the leader of India. He makes important decisions for the country.
Union Cabinet -: The Union Cabinet is a group of top leaders in the Indian government who help the Prime Minister make decisions.
Pradhan Mantri JI-VAN Yojana -: This is a government plan to support the production of biofuels, which are fuels made from plants and other natural materials.
biofuels -: Biofuels are fuels made from plants, like sugarcane or corn, instead of from oil. They are better for the environment.
feedstocks -: Feedstocks are the raw materials, like plants or waste, used to make biofuels.
ethanol blending -: Ethanol blending means mixing ethanol, a type of biofuel, with regular petrol to make it cleaner and better for the environment.
energy security -: Energy security means having a steady and safe supply of energy, like electricity and fuel, for the country.