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Tags Current Affairs

Cabinet approves Pradhan Mantri Jl-VAN Yojana

Date: 02 March 2019 Tags: Agriculture, Infrastructure

Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana. It has been launched as tool to create Second Generation (2G) Ethanol capacity in the country and attract investments in this new sector.


  • Provide financial support to Integrated Bioethanol Projects using lignocellulosic biomass and other renewable feedstock.
  • Incentivise 2G ethanol sector and support this nascent industry by creating a suitable ecosystem for setting up commercial projects and increasing R&D in this area.
  • Supplement targets envisaged by Central Government under Ethanol Blended Petrol (EBP) programme.

Features of Scheme

  • Under it, 12 Commercial Scale and 10 demonstration scale 2G ethanol Projects will be provided a Viability Gap Funding (VGF) support in two phases:
  • Phase-I (2018-19 to 2022-23): Six commercial projects and five demonstration projects will be supported.
  • Phase-II (2020-21 to 2023-24): Six commercial projects and five demonstration projects will be supported.


  • It will be implemented by Centre for High Technology (CHT), a technical body under Union Ministry of Petroleum and Natural Gas (MoP&NG) with total financial outlay of Rs.1969.50 crore for period from 2019 to 2024.
  • Projects under it will reviewed by Scientific Advisory Committee (SAC) of MoP&NG and then will be recommended to Steering Committee of MoP&NG under chairmanship of Secretary, MoP&NG for final approval.
  • Ethanol produced by scheme beneficiaries will be mandatorily supplied to Oil Marketing Companies (OMCs) to enhance blending percentage under EBP Programme.


  • Help Central Government to meet vision of reducing import dependence by way of substituting fossil fuels with biofuels.
  • Help to achieve Green House Gases (CHGs) emissions reduction targets through progressive blending/ substitution of fossil fuels.
  • Address environment concerns caused due to burning of biomass/crop residues and improve health of citizens.
  • Improve farmer income by providing them remunerative income for their otherwise waste agriculture residues.
  • Create rural and urban employment opportunities in 2G Ethanol projects and Biomass supply chain.
  • Contribute to Swacch Bharat Mission by supporting aggregation of non­food biofuel feedstocks such as waste biomass and urban waste.
  • Indigenize 2G Biomass to Ethanol technologies.


  • Central Government had launched EBP programme in 2003 for undertaking blending of ethanol in Petrol to address environmental concerns due to fossil fuel burning, provide remuneration to farmers, subsidize crude imports and achieve forex savings.
  • Under it, OMCs are allowed to blend upto 10% of ethanol in Petrol. Presently, EBP is being run in 21 States and 4 UTs of the country. Petroleum Ministry has set target to achieve 10% blending percentage of Ethanol in petrol by 2022.
  • The National Policy on Biofuel 2018 allows procurement of ethanol produced from molasses and non-food feed stock like celluloses and lignocelluloses material including petrochemical route.
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