Union Cabinet Approves Revamped Pradhan Mantri JI-VAN Yojana to Boost Biofuel Investment

The Union Cabinet, led by Prime Minister Narendra Modi, has approved the revamped Pradhan Mantri JI-VAN Yojana to foster investment in biofuels. The modified scheme extends to 2028-29, includes advanced biofuels and aims to enhance environmental sustainability, local employment, and India's energy security.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has greenlit the modified Pradhan Mantri JI-VAN Yojana in a bid to draw more investment in the burgeoning biofuels sector. As per the decision made on Friday, the new scheme will also keep the biofuel industry attuned to the latest advancements.

According to an official government release, the revamped scheme not only extends the implementation timeline by five years, until 2028-29, but also broadens its scope to include advanced biofuels from lignocellulosic feedstocks like agricultural residues, industrial waste, syn-gas, and algae. The updated plan will also support 'bolt-on' plants and 'brownfield projects' to leverage existing operational experience.

The initiative aims to promote innovative technologies and diverse feedstocks, giving priority to breakthrough projects. This will assist in providing remunerative income to farmers, mitigate environmental pollution, generate local employment opportunities, and contribute to India's energy independence and net-zero GHG emissions target by 2070. Additionally, the scheme aligns with the government's 'Make in India' mission by boosting the development of advanced biofuel technologies.

The Ethanol Blended Petrol (EBP) Programme benefits from this scheme, leading to a significant increase in ethanol-petrol blending rates. The government announced that Public Sector Oil Marketing Companies (OMCs) had achieved a blending percentage of over 13% in ESY 2023-24 and are on track to reach 20% by ESY 2025-26, requiring an ethanol distillation capacity of 1,750 crore liters.

The Pradhan Mantri JI-VAN Yojana, originally notified on March 7, 2019, aims to propel 2G ethanol capacity and attract investments. The first 2G ethanol project by Indian Oil Corporation Limited in Panipat was inaugurated by Prime Minister Modi on August 10, 2022. Additional projects by BPCL, HPCL, and NRL in Odisha, Punjab, and Assam are nearing completion.

(With inputs from agencies.)