The Indian government is driving the growth of the bioenergy sector with a host of strategic policies and programs aimed at fostering energy security, reducing greenhouse gas emissions, and advancing sustainable development. Here’s a closer look at the measures undertaken to propel the bioenergy and biofuels industries forward.
1. National Bioenergy Programme (NBP): Advancing Clean Energy Solutions
The government’s National Bioenergy Programme (NBP) promotes bioenergy and waste-to-energy technologies to enhance energy security and reduce dependency on fossil fuels. This initiative underscores India’s commitment to clean energy while addressing the challenges of sustainable development.
2. Ethanol Blending Programme (EBP): Milestones and Mechanisms
To achieve the enhanced ethanol blending target of 20% by 2025, the government has implemented key measures since 2014:
- Feedstock Expansion: Broadened feedstock sources for ethanol production, including sugarcane and grains.
- Administered Price Mechanism: Ensured fair procurement prices for sugarcane-based ethanol under the EBP.
- Tax Incentives: Reduced GST on ethanol to 5%.
- Ethanol Interest Subvention Schemes (EISS): Provided financial assistance for molasses- and grain-based ethanol production.
- Long-Term Offtake Agreements (LTOAs): Facilitated agreements between Oil Marketing Companies (OMCs) and Dedicated Ethanol Plants (DEPs).
3. Pradhan Mantri JI-VAN Yojana: Transforming Biomass into Energy
The Pradhan Mantri JI-VAN Yojana, notified in 2019 and amended in 2024, provides financial assistance for establishing advanced biofuel projects utilizing lignocellulosic biomass and other renewable feedstock.
- Funding Impact: Over ₹908 crore has been approved for six commercial-scale Second-Generation (2G) bio-ethanol projects and four demonstration-scale projects.
- Achievements:
- A 2G ethanol plant in Panipat, Haryana, has been operationalized.
- Three additional commercial-scale projects are nearing completion.
These initiatives significantly contribute to reducing CO2 emissions, with ethanol blending having cut approximately 557 lakh metric tonnes of emissions over the last decade.
4. Enhancing Maize Production for Ethanol
To increase maize as a primary feedstock for grain-based ethanol, the government, through ICAR – Indian Institute of Maize Research (IIMR), has launched awareness and training programs for farmers.
- Key Activities:
- Demonstrations of improved agricultural practices across 15 states during Kharif 2024.
- Specialized training for ethanol industry stakeholders, focusing on mechanization, weed control, and nutrient management.
These efforts aim to ensure high-quality maize production, boosting profitability and supporting ethanol production.
5. Oilfields Amendment Bill, 2024: Unlocking Energy Potential
The Oilfields (Regulation and Development) Amendment Bill, 2024, focuses on enhancing domestic oil and gas production while reducing reliance on imports.
- Key Objectives:
- Attract investment in Exploration and Production (E&P) sectors.
- Promote ease of doing business and risk mitigation for hydrocarbon exploration.
- Reduce the “No-Go” area from 1.36 million square kilometers to just 24,832 square kilometers, unlocking previously untapped oil and gas reserves.
The bill is expected to foster innovation and expedite petroleum operations, boosting India’s energy independence.
FAQs on Government Policies for Bioenergy Growth.
1. What is the National Bioenergy Programme (NBP)?
NBP is an initiative to promote bioenergy and waste-to-energy technologies, contributing to clean energy goals and sustainable development.
2. What is the Ethanol Blending Programme (EBP)?
The EBP aims to blend ethanol with petrol to reduce fossil fuel dependency, lower carbon emissions, and enhance energy security.
3. What is the significance of the Pradhan Mantri JI-VAN Yojana?
This scheme provides financial support for setting up advanced biofuel projects, utilizing agricultural residues like lignocellulosic biomass.
4. How does the Oilfields Amendment Bill, 2024, support energy security?
The bill opens previously restricted areas for hydrocarbon exploration, attracting investments and boosting domestic oil and gas production.
5. How has ethanol blending impacted carbon emissions in India?
Ethanol blending has reduced CO2 emissions by approximately 557 lakh metric tonnes over the past decade.