**Executive Summary**
This document outlines the government's initiatives to boost advanced biofuel production through the amended JI-VAN Yojana (amended in 2024) and other related policies. The objectives include establishing advanced biofuel projects, increasing farmer income, creating employment, reducing pollution, and decreasing dependence on crude oil imports. It also details ethanol production data from Sugar Season 2024-25. The information was provided by the Minister of State in the Ministry of Petroleum and Natural Gas.
**Key Points / Main Content**
* **JI-VAN Yojana:**
* The “Pradhan Mantri JI-VAN Yojana” 2019 was amended in 2024.
* Aims to establish advanced biofuel projects using lignocellulosic biomass and other renewable feedstocks.
* Objectives include:
* Providing income to farmers for agriculture residues
* Creating rural and urban employment
* Addressing pollution
* Reducing soil and water pollution
* Contributing to Swacch Bharat Mission
* Meeting Ethanol Blended Petrol (EBP) program targets
* Reducing dependence on crude oil import
* Involves setting up commercial and demonstration scale Advanced Biofuel Projects.
* **Biofuel Production Projects:**
* A commercial Second Generation (2G) Paddy Straw based bio-ethanol project has been set up by Indian Oil Corporation Ltd. (IOCL) at Panipat (Haryana).
* A Second Generation (2G) Bamboo based Biorefinery project has been set up at Numaligarh (Assam) by Numaligarh Refinery Ltd.
* IOCL has also established a 3G ethanol plant at Panipat, Haryana, using refinery off-gas as feedstock.
* **National Policy on Biofuels (Amended in 2022):**
* Promotes the use of damaged food grains (broken rice, etc.) and agriculture residues (rice straw, corn cobs, etc.) for biofuel production.
* Encourages use of feedstocks like corn, cassava, rotten potatoes, maize, sugarcane juice & molasses.
* Utilization of individual feedstock varies annually based on availability, costs, feasibility, market demand, and policy incentives.
* Diversion of sugarcane juice, by-products, maize, and other crops is calibrated in consultation with stakeholders.
* **Sugar and Maize Production:**
* Sugar production in the country exceeded domestic demand in Sugar Season (SS) 2024-25 (October - September).
* Sugar availability was 340 LMT, with 34 LMT diverted for ethanol production.
* Domestic sugar demand was 281 LMT.
* Sugar diversion for ethanol production stabilized sugar inventories and enabled timely payment to farmers.
* Maize production increased by nearly 30% from 337.30 LMT in 2021-22 to 443 LMT in 2024-25.
* **Ethanol Blended Petrol (EBP) Program Benefits:**
* Resulted in payments of over Rs. 1,36,300 crores to farmers (ESY 2014-15 to October 2025).
* Saved more than Rs. 1,55,000 crores in foreign exchange.
* Net CO2 reduction of approximately 790 lakh metric tonne.
* Substitution of more than 260 lakh metric tonnes of crude oil.
* **Other Initiatives:**
* Encouraging farmers to diversify from water-intensive crops to maize.
* Promoting molasses-based and grain-based distilleries to become zero liquid discharge (ZLD) units.
* Promoting water conservation in sugarcane cultivation via drip irrigation ('Per Drop More Crop').
* Running awareness campaigns among cane farmers for water conservation.
* Implementing Waste to Energy program to support CBG/Bio-CNG projects.
* Providing financial assistance to Compressed Bio Gas (CBG) producers for Biomass Aggregation Machinery.
**Impact Analysis**
**Farmers:**
* **Impact:** Receive increased income from selling agricultural residues for biofuel production and timely payment for sugarcane.
* **Action Required:** Consider diversifying to crops like maize and adopting water conservation techniques.
**Biofuel Producers:**
* **Impact:** Encouraged to establish advanced biofuel projects and utilize various feedstocks.
* **Action Required:** Take advantage of policy incentives and financial assistance for biomass aggregation machinery and implement zero liquid discharge practices.
**Sugar Mills:**
* **Impact:** Supported in stabilizing sugar inventories through ethanol production and encouraged to adopt water conservation techniques.
* **Action Required:** Participate in water conservation awareness campaigns for cane farmers.
**Government:**
* **Impact:** Progress towards meeting Ethanol Blended Petrol (EBP) program targets, reducing crude oil import dependence, and promoting environmental sustainability.
* **Action Required:** Continue to monitor the utilization of various feedstocks and consult with relevant stakeholders regarding sugarcane juice and other crops.
Key Entities Referenced
Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana: A scheme to establish advanced biofuels projects using lignocellulosic biomass and other renewable feedstocks.
Ethanol Blended Petrol (EBP) Programme: An initiative to reduce dependence on crude oil import by blending ethanol with petrol.
National Policy on Biofuels: Policy that promotes the use of damaged food grains, surplus food grains, and agriculture residues for biofuel production.
Ministry of Petroleum & Natural Gas: The ministry responsible for policies related to petroleum, natural gas, and biofuels.
Panipat (Haryana): Location where an Indian Oil Corporation Ltd. (IOCL) has set up a commercial Second Generation (2G) Paddy Straw based feedstock bio-ethanol project.
Ministry of Petroleum & Natural Gas
Government Boosts Advanced Biofuel
Production Through Expanded JI-VAN Yojana
प्रव तथ: 04 DEC 2025 4:32PM by PIB Delhi
The Government had notified the “Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal
awashesh Nivaran) Yojana” 2019, amended in 2024, with the objectives to establish advanced biofuels
projects in the country using lignocellulosic biomass and other renewable feedstocks, provide
remunerative income to farmers for their otherwise waste agriculture residues, create rural and urban
employment opportunities, address concerns of environmental pollution caused by burning of
biomass/agriculture residue, reduce soil and water pollution from municipal solid waste, contribute to
Swacch Bharat Mission, help in meeting the target envisaged in Ethanol Blended Petrol (EBP)
programme, reduce dependence on crude oil import, etc. This scheme envisages setting up of commercial
Advanced Biofuel Projects and demonstration scale Advanced Biofuel Projects for improving commercial
viability as well as promoting R&D for development and adoption of technologies in the field of
production of advanced biofuels.
Under this scheme, commercial Second Generation (2G) Paddy Straw based feedstock bio-ethanol project
has been set up by Indian Oil Corporation Ltd. (IOCL) at Panipat (Haryana). A Second Generation (2G)
Bamboo based Biorefinery project has been set up under the scheme at Numaligarh (Assam) by
Numaligarh Refinery Ltd. through a joint venture company, Assam Bio-Ethanol Private Limited
(ABEPL). Indian Oil Corporation Limited (IOCL) has also established a 3G ethanol plant at Panipat,
Haryana, using refinery off-gas as feedstock.
The National Policy on Biofuels, as amended in 2022, promotes use of, inter-alia, damaged food grains
like broken rice, food grains unfit for human consumption, food grains during surplus phase as declared
by the National Biofuel Coordination Committee (NBCC), and agriculture residues (Rice straw, cotton
stalk, corn cobs, saw dust, bagasse etc.). This Policy also promotes and encourages use of feedstock such
as corn, cassava, rotten potatoes, maize, sugarcane juice & molasses. The extent of utilization of
individual feedstock for ethanol production varies annually, influenced by factors such as availability,
costs, economic feasibility, market demand, and policy incentives. Any diversion of sugarcane juice, its
by-products, maize, and other food/feed crops for ethanol production is carefully calibrated in consultation
with relevant stakeholders.
The Department of Food and Public Distribution (DFPD) has informed that Sugar production in the
country exceeded domestic demand during the Sugar Season (SS) 2024-25 (October - September). Sugar
availability during SS 2024-25 stood at 340 lakh metric ton (LMT), apart from diversion of 34 LMT for
ethanol production, as against the domestic sugar demand of 281 LMT. Sugar diversion for ethanol
production has helped stabilize surplus sugar inventories in the country and timely payment to farmers for
their cane dues. Maize production has also increased by nearly 30% from 337.30 LMT in 2021-22 to 443
LMT in 2024-25.Ethanol Blended Petrol (EBP) Programme has resulted in expeditious payment to farmers to a tune of over
Rs. 1,36,300 crores from Ethanol Supply Year (ESY) 2014-15 up to October 2025, besides savings of
more than Rs. 1,55,000 crores of foreign exchange, net CO2 reduction of approximately 790 lakh metric
tonne and substitution of more than 260 lakh metric tonnes of crude oil.
The Government is also encouraging farmers to diversify from water intensive crops like rice, sugarcane,
etc. to more sustainable crops like maize for ethanol production. The “Roadmap for Ethanol Blending in
India 2020-25” has also noted that technological advancements have made it possible for molasses-based
distilleries with incineration boilers and grain-based distilleries to become zero liquid discharge (ZLD)
units, resulting in negligible pollution. Government is also promoting water conservation practices in
sugarcane cultivation also by promoting drip irrigation under ‘Per Drop More Crop’ scheme. Many sugar
mills are also running awareness campaigns among cane farmers for adopting water conservation
techniques.
In addition, the Government has been implementing the Waste to Energy programme under National
Bioenergy programme to support setting up of CBG/Bio-CNG projects from urban, industrial &
agricultural wastes/residues in the Country. Further, to facilitate biomass collection and prevent the
burning of agricultural residue, the Government has also been providing financial assistance to
Compressed Bio Gas (CBG) producers for procurement of Biomass Aggregation Machinery.
This information was given by the MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND
NATURAL GAS SHRI SURESH GOPI, in a written reply in Lok Sabha today.
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MONIKA
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