To attract investments worth Rs 5,000 crore in molasses/grain-based Ethanol production capacity in the State.” The policy seeks to support indigenous production of fuel grade ethanol under the EBP programme. “Given the fluctuations in crude oil prices, it is prudent for pioneer States like Tamil Nadu to augment biofuel production within the State using indigenous sources which could partly insulate the import price shocks, address the pollution concerns and enhance agricultural output and its utilisation.” The vision of the policy, released by Chief Minister M K Stalin in the Secretariat, is promotion of Tamil Nadu as a green economy and investment hub for alternate cost-effective green fuel.
Improving farmer income through price realisation and expansion in opportunities due to ethanol blending, reviving sugar industry in Tamil Nadu through improved utilisation of existing mills and diversification to dual feedstock forms part of the Mission statement. New grain-based distilleries or expansion of existing grain-based distilleries, new molasses and sugar/sugar syrup-based distilleries or expansion of existing distilleries, whether attached to sugar mills or standalone distilleries are covered under the scope of the policy, which is valid for 5 years from the date of notification. Augmenting indigenous bioethanol production capacity from agri-resources to encourage revival of the sugar industry and diversification to other food grains is among factors for encouraging EBP.
“Simplifying/streamlining regulatory challenges by creation of institutional mechanism to support investors with faster clearances and facilitate assured procurement,” is one of the other key aspect outlined. Ethanol is an agro-based product, mainly produced from a by-product of the sugar industry, namely molasses. The Centre’s Ethanol Blended Petrol Programme (EBP Programme) seeks to achieve blending of Ethanol with motor spirit with a view to reducing pollution, conserve foreign exchange and increase value addition in the sugar industry enabling them to clear cane price arrears of farmers.
