The Union Cabinet has approved an extension of the Pradhan Mantri JI-VAN Yojana, a crucial initiative aimed at advancing India’s biofuel sector. This extension extends the scheme’s implementation period by five years, now running until 2028-29, and expands its focus to include biofuels derived from lignocellulosic feedstocks, such as agricultural residues, forestry waste, industrial by-products, and algae.
The revamped Pradhan Mantri JI-VAN Yojana now incorporates “bolt-on” and “brownfield” projects, enabling existing facilities to upgrade and enhance their operations. The scheme places a strong emphasis on innovative technologies and diverse feedstocks, fostering advanced approaches within the biofuel industry.
Designed to provide financial support across various sectors, the scheme benefits farmers by offering a steady income through the sale of agricultural residues, reduces environmental pollution, creates local employment opportunities, and bolsters India’s energy security and self-reliance. Moreover, it aligns with India’s commitment to achieving net-zero greenhouse gas emissions by 2070 and supports the Make in India initiative.
This extension is part of a broader effort to meet the nation’s ethanol blending targets. Since the launch of the Ethanol Blended Petrol (EBP) Programme, ethanol blending in petrol has increased dramatically from 38 crore liters in 2013-14 to over 500 crore liters in 2022-23, with a current blending rate exceeding 15%. The government aims to achieve a 20% blending target by the end of the 2025-26 ethanol supply year, necessitating significant growth in ethanol production capacity.
To support this goal, the Pradhan Mantri JI-VAN Yojana focuses on developing 2nd Generation (2G) ethanol from surplus biomass and agricultural waste. Initially launched in March 2019, the scheme has already facilitated the establishment of India’s first 2G ethanol plant by Indian Oil Corporation in Panipat, with additional projects by BPCL, HPCL, and NRL nearing completion.