a.Financial Assistance to Sugar Mills for Augmentation of Ethanol
Production Capacity.
In order to increase production of ethanol and its supply under Ethanol Blended with Petrol (EBP) Programme,
especially in the surplus season and thereby improve the liquidity position of the sugar mills, enabling them to
clear cane price arrears of the farmers, the Central Government has notified the following schemes:
- (i) Scheme for extending Financial Assistance to Sugar Mills for Enhancement and Augmentation of Ethanol
Production Capacity-2018-19
- (ii) Schemes for extending Financial Assistance to Sugar mills & Molasses Based
standalone distilleries for enhancement and augmentation of ethanol production
capacity – 2018-19
- (iii) Scheme for extending financial assistance to project proponents for enhancement
of their ethanol distillation capacity or to set up distilleries for producing 1st
Generation (1G) ethanol from feed stocks such as cereals (rice, wheat, barley, corn &
sorghum), sugarcane, sugar beet, etc. – 2021
Department of Food and Public Distribution, Ministry of Consumer Affairs and Food
& Public Distribution is the nodal Department for the above-mentioned Schemes.
NABARD has been appointed as the Nodal Agency for channelizing interest
subvention under these flagship programme.
Interest Subvention is provided @ 6% per annum or 50% of the rate of interest,
whichever is lower is borne by the Government of India for five years only, including
one year moratorium period, on the loans extended by the Financial Institutions.
As on date, DFPD has accorded in-principle approval to 1141 Sugar mills out of which NABARD has received claims of 304 sugar mills/distilleries. Claims amounting Rs.1534.95 Cr. has been released.
The cumulative position of interest subvention released as at the end of each year since inception, is given in table:
| Year |
No. of units (In Quarters) |
Interest subvention released (Rs.cr.) |
| 2020-21 |
194 |
65.9 |
| 2021-22 |
315 |
132.39 |
| 2022-23 |
743 |
240.35 |
| 2023-24 |
917 |
492.27 |
| 2024-25 |
899 |
604.04 |
| Total |
3068 |
1534.95 |
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