Cabinet Extends and Expands Pradhan Mantri JI-VAN Yojana for Advanced Biofuels

In a pivotal move to advance biofuel technology and attract increased investment, the Union Cabinet has approved an amendment to the Pradhan Mantri JI-VAN Yojana.

This revised scheme is designed to provide enhanced financial support for advanced biofuel projects utilising lignocellulosic biomass and other renewable feedstocks. The amendment is a strategic effort to keep pace with recent developments in biofuel technology and foster greater investment in the sector.

The amended scheme extends the timeline for its implementation by five years, now running until the fiscal year 2028-29. This extension is aimed at providing more time for projects to be developed and to capitalise on the financial support available.

Additionally, the scope of the scheme has been expanded to include advanced biofuels produced from a broader range of feedstocks. These include lignocellulosic materials such as agricultural and forestry residues, industrial waste, synthesis (syn) gas, and algae.

The amendment also introduces eligibility for "Bolt-on" plants and "Brownfield projects," allowing these projects to leverage existing infrastructure and improve their financial feasibility. A key aspect of the revised scheme is its focus on fostering technological innovation and diversity. Preference will be given to project proposals that incorporate new technologies and innovative approaches in the biofuel sector. This change is intended to promote the development of multiple technologies and feedstocks, enhancing the overall effectiveness and reach of the scheme.

The Pradhan Mantri JI-VAN Yojana aims to achieve several significant goals. It is designed to provide remunerative income to farmers by utilizing agricultural residue, address environmental pollution by reducing waste, create local employment opportunities, and contribute to India’s energy security and self-reliance.

The scheme also supports the development of advanced biofuel technologies and aligns with the Make in India initiative. Moreover, it plays a crucial role in helping India meet its ambitious target of achieving net-zero greenhouse gas emissions by 2070. It may be noted that India has actively promoted ethanol blending with petrol through the Ethanol Blended Petrol (EBP) Programme. Under this programme, Public Sector Oil Marketing Companies (OMCs) have significantly increased the blending of ethanol with petrol.

The blending volume rose from 38 crore liters in the Ethanol Supply Year (ESY) 2013-14 to over 500 crore liters in ESY 2022-23. The blending percentage increased from 1.53 percent to 12.06 percent, and as of July 2024, it has reached 15.83 percent. The cumulative blending percentage has surpassed 13 percent for the ongoing ESY 2023-24. To meet the target of 20 percent blending by the end of ESY 2025-26, it is estimated that more than 1100 crore liters of ethanol will be required.

This demand necessitates the installation of 1750 crore liters of ethanol distillation capacity to meet blending requirements and other uses such as potable, chemical, and pharmaceutical applications. In response, the government is also focusing on second-generation (2G) ethanol, an advanced biofuel derived from surplus biomass and agricultural waste using advanced technology.

The Pradhan Mantri JI-VAN (Jaiv Indhan-Vatavaran Anukool Fasal Avashesh Nivaran) Yojana was initially notified on March 7, 2019, to provide financial support for 2G bio-ethanol projects. Under this scheme, the first 2G ethanol project, set up by Indian Oil Corporation Limited at Panipat, Haryana, was inaugurated on August 10, 2022. Other 2G commercial projects by BPCL, HPCL, and NRL in Bargarh (Odisha), Bathinda (Punjab), and Numaligarh (Assam) are also nearing completion, marking significant progress in India’s biofuel sector.