The state government has decided that if ethanol production units invest 100 crores, then the government will give them about 60 crores as subsidy in 7 years. At present, ethanol will be made from rice and maize in the state, which will be given to petroleum companies from ₹ 51 to ₹ 54 per liter.
Shivraj Singh Chouhan government of Madhya Pradesh took many big decisions regarding ethanol production in the state. In this, it has been said to provide free electricity from subsidy. The state government wants to produce 60 crore liters of ethanol in the state by 2024. These ethanol can be mixed up to a few percent in petrol.
In the cabinet meeting held on Monday 13 September, the state government decided that if ethanol production units invest 100 crores, then the government will give them about 60 crores as subsidy in 7 years. At present, ethanol will be made from rice and maize in the state, which will be given to petroleum companies from ₹ 51 to ₹ 54 per liter. In this, incentives will be given at the rate of Re 1 50 paise per liter.
Various types of financial assistance will be available
The state government has also decided to issue a financial assistance scheme for the promotion of ethanol and biofuel production. Financial assistance of Rs.1.50 per liter will be given to petroleum oil producing companies for 7 years from the start of production on providing ethanol produced by the unit, to a maximum of 100% of the investment made in plant and machinery associated with the production. 100% reimbursement of stamp duty and registration fee will be done on purchase of land.
100% discount on electricity bill for 5 years
100% rebate in electricity bill will be given for next 5 years from the day of commencement of production. Quality Certification Reimbursement 50% of the quality certification cost or Rs.1 lakh whichever is less will be given. 100% patent fee will be reimbursed to the extent of Rs.5 lakh. 50% subsidy on equipment for zero liquid discharge facility, subject to a maximum limit of Rs 1 crore, will also be given. 50% of the project expenditure for water/electricity/road infrastructure development on private/undeveloped government land allotted to industry, subject to a maximum of Rs.1 crore for each item, will be reimbursed. MPIDC, Bhopal will be the nodal agency for the implementation of the policy.
What is Ethanol
Ethanol is a type of alcohol that can be mixed with petrol and used as fuel in vehicles. Ethanol is produced mainly from the sugarcane crop, but it can also be prepared from many other sugar crops.
Using ethanol emits 35 percent less carbon monoxide. Not only this, it also reduces carbon monoxide emissions and sulfur dioxide. Apart from this, ethanol also reduces the emission of hydrocarbons. Ethanol contains 35% oxygen. Using ethanol fuel reduces nitrogen oxide emissions.
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