The Cabinet Committee on Economic Affairs (CCEA) recently gave its approval to the Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana. The purpose of this scheme is to infuse financial support through Viability Gap Funding (VGF) for 2nd Generation (2G) Integrated Bioethanol Projects that utilize lignocellulosic biomass and other renewable feedstock.
Understanding Key Terminologies
Viability Gap Funding (VGF) pertains to a one-time or deferred grant to facilitate infrastructure projects economically justified but lacking financial viability. Lignocellulosic biomass (LC biomass) refers to plant biomass comprising cellulose, hemicellulose, and lignin. Examples include cereal straw, bagasse, forest residues, and energy crops like vegetative grasses.
Features of the Scheme
The primary goal of the Yojana is to foster an ecosystem conducive for setting up commercial projects and ensuring a boost to Research and Development in the 2G Ethanol sector. A provision has been made under the scheme for supporting 12 Commercial projects along with 10 Demonstration Projects. The program will be split into two phases with each phase dedicated to supporting 6 commercial and 5 demonstration projects. All beneficiaries of the scheme are required to supply the ethanol they produce to Oil Marketing Companies (OMCs) to increase the blending percentage under the Ethanol Blending Programme (EBP). The Centre for High Technology (CHT), a technical body under the aegis of MoP&NG, has been appointed as the implementing agency for the scheme.
| Phase | Year | Commercial Projects Supported | Demonstration Projects Supported |
|---|---|---|---|
| I | 2018-19 to 2022-23 | 6 | 5 |
| II | 2018-19 to 2022-23 | 6 | 5 |
Benefits of Pradhan Mantri JI-VAN Yojana
The Yojana promotes the 2G Biofuels Technology, which encourages the use of non-food crops, agricultural residues, or waste as feedstocks, unlike the 1st Generation (1G) technology which relies on food crops. The scheme aims to reduce Green House Gas emission by gradually substituting fossil fuels. It also fosters better health conditions for citizens by preventing burning of biomass and crop residues. Additionally, it aids in improving farmer income, generating employment opportunities in 2G Ethanol projects and Biomass supply chain, and contributing towards the Swacch Bharat Mission through disposal of non-food biofuel feedstocks such as waste biomass and urban waste. It further encourages the development of 2nd Generation Biomass to Ethanol technologies in the country by promoting Research & Development.
A Look at the Background
In 2003, the Indian government launched the Ethanol Blended Petrol (EBP) programme to blend ethanol into petrol. This move intended to address environmental concerns arising from fossil fuel burning, offer remuneration to farmers, subsidize crude imports, and achieve forex savings. At present, 21 states and 4 Union Territories in India are implementing the EBP programme, under which Oil Marketing Companies (OMCs) are expected to blend up to 10% of ethanol in petrol. The Pradhan Mantri JI-VAN Yojana is introduced as an instrument to generate 2G Ethanol capacity in the country and invite investments into this emerging sector.
Understanding Biofuels
Biofuels are fuels derived from biomass, which includes the biodegradable fraction of products, waste, and residues from agriculture and forestry. Also, it comprises the biodegradable fraction of industrial and municipal wastes. They are categorized into four generations: First, Second, Third, and Fourth, each having unique characteristics and impacts. Key advantages of biofuels include its renewable nature, non-toxicity, biodegradability, absence of sulfur causing acid rain, environmental friendliness due to lesser emissions, and potential to create rural employment.
