Year-Round Revolution: Transforming Sugar Mills with Multi-Feedstock Ethanol

The union food ministry has launched a scheme to convert sugar mills into multi-feedstock ethanol facilities. This initiative, part of the Ethanol Interest Subvention Scheme, offers interest subsidies to enable year-round operations, supporting the Ethanol Blended with Petrol Programme for national biofuel targets.

The union food ministry announced a pioneering scheme on Friday, designed to convert cooperative sugar mills' ethanol plants into multi-feedstock facilities. This transformative move aims to extend plant operations throughout the year by utilizing grains such as maize and damaged food grains. The scheme falls under the modified Ethanol Interest Subvention Scheme.

Under this initiative, cooperative sugar mills are set to receive interest subsidies of 6 per cent per annum or 50 per cent of bank interest rates, whichever is lower, over a five-year period, including a one-year moratorium. This conversion is anticipated to circumvent the limited 4-5 month sugarcane crushing season, thus enhancing operational efficiency and productivity.

The ministry emphasized the scheme's role in bolstering the Ethanol Blended with Petrol (EBP) Programme, which seeks to achieve a 20 per cent ethanol blend in petrol by 2025. By promoting the use of alternative feedstocks, the scheme enhances the financial viability of sugar mills and contributes to national biofuel objectives, reducing reliance on fossil fuel imports.

(With inputs from agencies.)