1. DEDICATED ETHANOL PLANTS IN ETHANOL DEFICIT STATES FOR SUPPLY OF DENATURED ANHYDROUS ETHANOL
2. LONG TERM SUPPLY OF DENATURED ANHYDROUS ETHANOL TO OIL MARKETING COMPANIES (OMCs)
3. Mechanism for Ethanol Procurement by Public Sector OMCs
4. LONG TERM ETHANOL PROCUREMENT POLICY UNDER ETHANOL BLENDED PETROL (EBP) PROGRAMME
5. Extending Financial Assistance to Project Proponents for Enhancement of Ethanol distillation capacity or to set up distilleries for producing 1st Generation (1G) ethanol from feedstocks

• Eligibility i. For setting up grain-based distilleries/expansion of existing grain-based distilleries to produce ethanol. ii. For setting up new molasses-based distilleries/expansion of existing distilleries (whether attached to sugar mills or standalone distilleries) to produce ethanol and for installing any method approved by Central Pollution Control Board for achieving Zero Liquid Discharge (ZLD). iii. To set up new dual-feed distilleries or to expand existing capacities of dual-feed distilleries. iv. To convert existing molasses-based distilleries (whether attached to sugar mills or standalone distilleries) to dual feed (molasses and grain / or any other feedstock producing 1G Ethanol) and also to convert grain-based distilleries to dual feed. v. To set up new distilleries/expansion of existing distilleries to produce ethanol from other feedstocks producing 1G ethanol such as sugar beet, sorghum, cereals, etc. vi. To install Molecular Sieve Dehydration (MSDH) column to convert rectified spirit to ethanol in the existing distilleries

1. 1. Tenor of loan Tenor of loan shall be as per existing bank’s norm. However, payment of interest subvention on loan amount under the scheme will be limited to only 5 years including one year moratorium period. 
   2.  Margin 5% of the project cost wherever tripartite agreement amongst the project proponents, the bank and the OMC for purchase of ethanol is executed
   3. Security Primary Security: 

•  Term Loan: The project proponents would be required to make available first exclusive charge / first pari passu charge on its Fixed Assets, as primary security purchased out of bank finance. Collateral Security: 5% of the loan amount 

•  Extension of 1st / 2nd (pari passu) charge on other existing securities or other securities where residual value is available / which are free from encumbrances as the case may be. 

I.         INDIAN ETHANOL BLENDING PROGRAMME (EBP)

Government of India (GOI) is implementing Ethanol Blending Programme (EBP), in which fuel grade ethanol of 99.6 % purity is blended with petrol as a motor fuel. In the year 2018-19, 5.0% and in year 2019-20, 4.5% blending has been achieved. This is against 10% EBP stipulated by GOI.

Considering GOI policy of 20% EBP, the requirement of fuel grade ethanol by the year 2022-23 is 6.9 billion liters. So far the total procurement in Ethanol Supply Year (ESY 2019-20) by the Oil Marketing Companies (OMCs) is 1.73 billion liters. In (ESY 20120-21) it is expected to be around 2.85 billion liters. Therefore, there is a shortage of 4.05 billion liters for fuel grade ethanol. This gap can be covered with the establishment of new molasses, Sugarcane Syrup and grain based distilleries.

The Government has 10% blending target for mixing ethanol with petrol by 2022 & 20% blending target by 2025.

The GOI has made 10% EBP mandatory from the coming crushing season 2019-20.

The requirement of ethanol at 10% blending will be around 3.6 billion litres.