Bihar's Ethanol Expansion: Boosting Green Energy Initiatives

Bihar has received in-principle approvals for interest subvention on 47 projects to establish or expand ethanol distilleries. The government aims to achieve a 20% ethanol blending target in petrol by 2025-26 through the Ethanol Blended Petrol Programme. The initiative includes multiple schemes launched between 2018 and 2022.

The government has granted in-principle approvals for interest subvention on 47 projects in Bihar aimed at setting up or expanding existing distilleries. This move is part of a broader strategy to escalate ethanol production, as per a statement released on Wednesday.

Minister of State for Food, Nimuben Jayatibhai Bambhaniya, outlined the operational status of 22 ethanol distilleries in the region, comprising eight molasses-based and 14 grain-based facilities. These developments align with the administration's Ethanol Blended Petrol (EBP) Programme, which motivates Oil Marketing Companies (OMCs) to increase the ethanol percentage in petrol to 20% by the financial year 2025-26.

To achieve these ambitions, the Centre has rolled out a series of Ethanol Interest Subvention Schemes over the past four years. Following the bidding process by OMCs for each Ethanol Supply Year, distilleries' ethanol supply allocations are adjusted based on feedstock availability, with flexibilities in the allocation process to accommodate feedstock shortages.

(With inputs from agencies.)