Context

Cabinet Committee on Economic Affairs has approved the "Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool Fasal Awashesh Nivaran) Yojana" for providing financial support to Integrated Bioethanol Projects using lignocellulosic biomass and other renewable feedstock.

About

• "Pradhan Mantri JI-VAN Yojana" is being launched as a tool to create 2G Ethanol capacity in the country and attract investments in this new sector.
• It will be supported with total financial outlay of Rs.1969.50 crore for the period from 2018-19 to 2023-24. Under this Yojana, 12 commercial scale and 10 demonstration scale second generation (2g) ethanol projects will be provided a Viability Gap Funding (VGF) support in two phases.
• The scheme focuses to incentivize 2G Ethanol sector and support this nascent industry by creating a suitable ecosystem for setting up commercial projects and increasing Research & Development in this area.
• The ethanol produced by the scheme beneficiaries will be mandatorily supplied to Oil Marketing Companies (OMCs) to further enhance the blending percentage under EBP Programme.
• Centre for High Technology (CHT), a technical body under the aegis of MoP&NG, will be the implementation Agency for the scheme.

Apart from supplementing the targets envisaged by the Government under EBP programme, the scheme will also have the following benefits:

1. 1. Meeting Government of India vision of reducing import dependence by way of substituting fossil fuels with Biofuels.
   2. Achieving the GHG emissions reduction targets through progressive blending/ substitution of fossil fuels.
   3. Addressing environment concerns caused due to burning of biomass/ crop residues & improve health of citizens.
   4. Improving farmer income by providing them remunerative income for their otherwise waste agriculture residues.
   5. Creating rural & urban employment opportunities in 2G Ethanol projects and Biomass supply chain.
   6. Contributing to Swachh Bharat Mission by supporting the aggregation of non­food biofuel feedstocks such as waste biomass and urban waste.
   7. Indigenizing of second generation biomass to ethanol technologies.