## Policy Analysis Report: Sugarcane Control Amendment Order, 2021
**1. Executive Summary:**
This report analyzes the Sugarcane Control Amendment Order, 2021, which amends the original Sugarcane Control Order, 1966. The core purpose of this amendment, as gleaned from the text, is to promote the production of ethanol from sugarcane and its byproducts by relaxing certain regulations for factories exclusively dedicated to ethanol production. Key findings highlight changes to the definitions of "factory or sugar factory" and "producer of sugar," as well as exemptions from performance guarantees and modified timelines for factories focused solely on ethanol production.
**2. Introduction:**
This report provides an informative analysis of the Sugarcane Control Amendment Order, 2021, based solely on the provided text. The purpose of this report is to inform affected industries about the key changes introduced by this amendment to the Sugarcane Control Order, 1966.
**3. Policy Overview:**
* This is an **Amendment** to the original Sugarcane Control Order, 1966.
* **Core Objective(s):** Based on the provided text, the primary objective appears to be to incentivize and facilitate the production of ethanol from sugarcane, sugarcane juice, sugar, sugar syrup, or molasses (including BHeavy molasses). This is achieved by providing specific exemptions and modifications to existing regulations for factories solely dedicated to ethanol production.
**4. Background and Rationale:**
This amendment likely aims to address barriers or disincentives to ethanol production within the existing framework of the Sugarcane Control Order, 1966. The inclusion of "ethanol" in the definitions and the provision of exemptions suggest that the original order may not have adequately addressed the emerging importance of ethanol as a fuel source or a value-added product from sugarcane. By relaxing certain requirements, the government seems to be encouraging investment and production in ethanol-only facilities.
**5. Key Provisions / Changes:**
This section details the specific changes introduced by the Sugarcane Control Amendment Order, 2021:
* **Definition of "factory or sugar factory":** Clause 2(i)(c) of the original order is amended to include premises where ethanol is manufactured from sugarcane juice, sugar, sugar syrup or molasses, including BHeavy molasses, as an option for a factory or sugar factory.
* **Effect:** This broadens the definition of "factory or sugar factory" to explicitly encompass ethanol production facilities, aligning the definition with current industry practices and government objectives.
* **Definition of "producer of sugar":** Clause 2(ii)(i) of the original order is amended to include a person carrying on the business of manufacturing of ethanol from sugarcane juice, sugar or sugar syrup or molasses, including BHeavy molasses, as an option for a producer of sugar.
* **Effect:** This change ensures that entities solely producing ethanol from sugarcane byproducts are also recognized as "producers of sugar" under the order, likely granting them access to certain benefits or incentives.
* **Explanation 3 in Clause 3(1):** Explanation 3 is substituted to clarify that "ethanol" includes rectified spirit, special denatured spirit, extra neutral alcohol, absolute alcohol, anhydrous denatured ethanol, fuel grade ethanol, or any other form of ethyl alcohol.
* **Effect:** Clarifying this definition of ethanol ensures comprehensive coverage of various types of ethanol that can be produced under this policy.
* **Performance Guarantee Exemption (Clause 6B(2)):** A proviso is added to Clause 6B(2) stating that the requirement of submitting a performance guarantee is not required for a factory set up to produce *only* ethanol from sugarcane juice, sugar, syrup, or molasses (including BHeavy molasses).
* **Effect:** This significantly reduces the financial burden and administrative hurdles for establishing ethanol-only factories, encouraging new investments in the sector.
* **Timeline for Effective Steps (Clause 6C):** Clause 6C(1) is amended to state that except in the case of production of only ethanol from sugarcane juice or sugar or sugar syrup or molasses including BHeavy molasses, the words shall be three years shall be substituted
* **Effect:** This amendment provides an exception for ethanol producers related to the existing 3 year timeline
* **Timeline for Effective Steps (Clause 6C):** A new subclause 3 is inserted into Clause 6C, specifically addressing factories solely producing ethanol from sugarcane juice, sugar, syrup, or molasses (including BHeavy molasses). It stipulates a three-year timeline from filing the Industrial Entrepreneur Memorandum (IEM) for taking effective steps, failing which the IEM will be derecognized. A proviso allows for a one-year extension by the Chief Director Sugar, Directorate of Sugar and Vegetable Oils, based on project progress related to land acquisition, environmental clearance, and loan disbursement.
* **Effect:** While setting a timeframe, this also creates a process for extensions, showing the government is willing to work with producers.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders for this amendment are:
* Existing sugar factories considering diversifying into ethanol production.
* Entrepreneurs and companies planning to establish new facilities *solely* for ethanol production from sugarcane and its byproducts.
* The Chief Director Sugar, Directorate of Sugar and Vegetable Oils.
**7. Implementation Aspects (Inferred):**
* **Responsible agency:** The Chief Director Sugar, Directorate of Sugar and Vegetable Oils, is responsible for granting extensions to the three-year timeline for establishing ethanol-only factories.
* **Timelines:**
* Factories producing only ethanol have three years from filing the IEM to take effective steps towards commercial production.
* A one-year extension may be granted by the Chief Director Sugar under specific conditions.
* **Procedures:** The extension process involves the project proponent demonstrating progress in land acquisition, environmental clearance, and loan disbursement.
**8. Expected Outcomes / Impact of Changes:**
The intended outcomes of these specific changes are likely:
* Increased investment in ethanol production facilities, particularly those solely focused on ethanol.
* A streamlined regulatory environment for ethanol producers, reducing administrative burdens and financial hurdles.
* Greater ethanol production capacity, contributing to the government's ethanol blending program and reducing reliance on fossil fuels.
* Diversification of the sugarcane industry, providing alternative revenue streams for sugarcane farmers and factories.
**9. Conclusion:**
The Sugarcane Control Amendment Order, 2021, represents a significant step towards promoting ethanol production in India. By specifically addressing the needs and challenges of ethanol-only factories, this amendment aims to unlock the potential of sugarcane and its byproducts for the production of a renewable fuel source. The exemptions and modified timelines introduced by this amendment are expected to incentivize investment and drive growth in the ethanol sector, benefiting both the sugar industry and the broader economy.
Key Entities Referenced
Essential Commodities Act, 1955: A law that confers powers on the Central Government to control the production, supply, and distribution of essential commodities.
Central Government: The executive authority of the Union of India.
Sugarcane Control Order, 1966: An order pertaining to the regulation of sugarcane production and distribution.
Sugarcane Control Amendment Order, 2021: An amendment to the Sugarcane Control Order, 1966.
Official Gazette: A public journal where government notifications and legal notices are published.
Ministry of Consumer Affairs, Food and Public Distribution: A ministry of the Government of India.
Department of Food and Public Distribution: A department under the Ministry of Consumer Affairs, Food and Public Distribution.
New Delhi: The capital of India where the order was issued.
Chief Director Sugar, Directorate of Sugar and Vegetable Oils: An authority that can grant extension for Industrial Entrepreneur Memorandum implementation.
Industrial Entrepreneur Memorandum: A filing required for setting up certain industries. In this context, related to ethanol production.
Subodh Kumar Singh: Joint Secretary who signed the order.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
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असाधारण
EXTRAORDINARY
भाग II—खण्ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 1926] नई ददल्ली, सोमर्ार, मई 31, 2021/ज्य ष्े ठ 10, 1943
No. 1926] NEW DELHI, MONDAY, MAY 31, 2021/JYAISHTHA 10, 1943
उपभोक् ता मामल,े खाद्य और सार्िव जनक जर्तरण मत्रं ालय
(खाद्य और सार्िव जनक जर्तरण जर्भाग)
आदिे
नई ददल् ली, 31 मई, 2021
का.आ. 2071(अ).— केन्दर ीय सरकार, आर्श्यक र्स्ट्त ु अजधजनयम, 1955 (1955 का 10) की धारा 3 द्वारा प्रदत् त
िजियों का प्रयोग करते हुए गन्ना (जनयंत्रण) आदिे , 1966 में संिोधन करने के जलए जनम् नजलजखत आदिे बनाती ह,ै
अथावत:् -
1. (1) इस आदिे को गन्द ना जनयंत्रण (संिोधन) आदिे , 2021 कहा िाएगा।
(2) यह आजधकाररक रािपत्र में उसके प्रकािन की तारीख से प्रर्ृत्त होगा।
2. गन्द ना (जनयंत्रण) आदिे , 1966 में -
(क) खंड 2 में,-
(i) उप खण् ड (ग) के जलए, जनम् नजलजखत उप-खण् ड को प्रजतस्ट्थ ाजपत दकया िाएगा, नामत: -
‘(ग) “फैक् टरी या िुगर फैक् टरी” का अथव ह,ै ऐसा पररसर िहां गन्द ने के दकसी भाग की पेराई की िाती ह ै और र्ैक् यूम पैन
प्रदिया या स्ट् र्यं द्वारा ययजनत जर्कल् प से यीनी तैयार की िाती ह ै अथर्ा बी-हर्ै ी िीरे सजहत गन्द ने के रस या यीनी या
यीनी के जसरप से इथेनोल तैयार दकया िाता है;
(ii) उप-खण्ड (i) के जलए, जनम्नजलजखत उप-खण्ड को प्रजतस्ट्थाजपत दकया िाएगा, नामत: -
‘(i) “यीनी उत्पादक” का अथव ह ै ऐसा व्यजि िो र्ैक् यूम पैन प्रदिया से यीनी उत् पादन का कारोबार करता ह ै या स्ट्र् यं द्वारा
ययजनत जर्कल् प बी-हर्ै ी िीरे सजहत गन्द ने के िूस या यीनी या यीनी के जसरप या िीरे से इथेनोल तैयार करता ह।ै ‘
2887 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(ख) खण् ड 3 में, उप-खण्ड (1) में, स्ट्प ष् टीकरण (3) के जलए, जनम्नजलजखत स्ट्प ष् टीकरण को प्रजतस्ट्थाजपत दकया िाएगा,
नामत: -
“स्ट्प ष्ट ीकरण (3) - इस आदिे के प्रयोिन से, “इथेनोल” में रेजक्टफाइड जस्ट्पररट, जर्िेष रूप से डी-नेयडव जस्ट्पररट, एक्स्ट्रा
न्दयरू ल अल्कोहल, एब्सोल्यूट अल्कोहल, एनहाइड्रस डी- नेयडव इथेनोल, फ्यूल ग्रेड इथेनोल या इथाईल अल्कोहल का कोई
अन्दय रूप सजम्मजलत ह।ै ” (ग) खण्ड 6 ख में, उप-खण्ड (2) में, जनम्नजलजखत परंतुक को डाला िाएगा, नामत: -
“बिते दक दकसी फैक्री के मामले में, जिसे बी-हर्ै ी िीरे सजहत गन्द ने के िूस या यीनी या यीनी के जसरप या िीरे से इथेनोल
का उत्प ादन करने के जलए स्ट्थ ाजपत दकया गया ह,ै कायव-जनष्पादन गारंटी प्रस्ट्तुत करना आर्श् यक नह ह”ै ;
(घ) खंड 6ग में,
(i) उप-खंड (1) में, ‘तीन र्षव होगा’ िब्दों के जलए, “बी-हर्ै ी िीरे सजहत गन् ने के िूस या यीनी या यीनी के जसरप
या िीरे से केर्ल इथेनोल के उत्प ादन के मामले में तीन र्षव होगा“ प्रजतस्ट्थाजपत दकए िाएंगे;
(ii) उप-खंड (2) के बाद, जनम्नजलजखत उप-खंड समाजर्ष् ट दकया िाएगा, नामत: -
“(3) दकसी फैक्री के मामल े में, िो बी-हर्ै ी िीरे सजहत गन्द ने के िूस या यीनी या यीनी के जसरप या िीरे से
केर्ल इथेनोल के उत्पादन, करने के जलए स्ट्थाजपत की गई ह,ै खण् ड 6क के स्ट्पष्टीकरण 4 में जर्जनदजव ष्ट प्रभार्ी
कदम उठाने के जलए जनधावररत अर्जध औद्योजगक उद्यमी ज्ञापन में दि व दकए िान े से तीन र्ष व की होगी जिसके न
दकए िाने पर औद्योजगक उद्यमी ज्ञापन की मान्द यता समाप् त हो िाएगी:
बिते दक यदद इथेनोल का उत्पादन जनधावररत अर्जध में प्रारम् भ नह दकया िाता ह,ै तो प्रधान जनदिे क (िकवरा), िकवरा एर्ं
र्नस्ट्पजत तले जनदिे ालय, पररयोिना प्रस्ट् तार्क द्वारा की गई प्रगजत िैस े पररयोिना के जलए भूजम की व् यर्स्ट् था, पयावर्रण
संबंधी क् लीयरेंस प्राप्त करना और बैंकों द्वारा ऋण के संजर्तरण को ध् यान में रखत े हुए औद्योजगक उद्यमी ज्ञापन को लागू
करने और उसके र्ाजणजज्यक उत्पादन की िुरुआत करने के जलए एक र्षव की अर्जध तक बढाया िा सकता ह।ै
[फा. सं. 3(3)/2018-एसपी-I]
सुबोध कुमार ससह, संयुक् त सजयर्
नोट : भारत के रािपत्र, असाधारण में ददनांक 16 िुलाई, 1966 की अजधसूयना संख्य ा सा.का.जन. 1126/आर्.र्स्ट् त/ु
गन्द ना के तहत मूल जनयम प्रकाजित दकए गए थे और तदपु रांत जनम्न जलजखत के िररए इन्द ह ें संिोजधत दकया
गया था:-
1. सा.का.जन. 35/आर्.र्स्ट्तु/गन्ना, ददनांक 05.01.1967
2. सा.का.जन. 1591/आर्.र्स्ट्तु/गन्ना, ददनांक 17.10.1967
3. सा.का.जन. 945/आर्.र्स्ट्तु/गन्ना, ददनांक 18.05.1968
4. सा.का.जन. 1456/आर्.र्स्ट्तु/गन्ना, ददनांक 02.08.1968
5. सा.का.जन. 620(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 08.04.1970
6. सा.का.जन. 402(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 25.09.1974
7. सा.का.जन. 492(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 12.09.1975
8. सा.का.जन. 542(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 27.10.1975
9. सा.का.जन. 484(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 26.07.1976
10. सा.का.जन. 799(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 13.09.1976
11. सा.का.जन. 815(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 24.09.1976
12. सा.का.जन. 913(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 09.12.1976
13. सा.का.जन. 62(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 02.02.1978[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
14. सा.का.जन. 197(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 28.03.1978
15. सा.का.जन. 427(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 03.07.1981
16. सा.का.जन. 79(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 24.02.1982
17. सा.का.जन. 695(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 09.09.1983
18. सा.का.जन. 903(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 29.11.2000
19. सा.का.जन. 113(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 20.02.2003
20. सा.का.जन. 204(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 22.03.2004
21. का.आ. 1940(अ)ददनाकं 10.11.2006
22. का.आ. 1309(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 31.07.2007
23. का.आ. 2198(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 28.12.2007
24. का.आ. 2984(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 29.12.2008
25. का.आ. 2665(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 22.10.2009
26. का.आ. 33(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 07.01.2010
27. सा.का.जन. 2787(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 24.08.2016
28. का.आ. 3093(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 30.09.2016
29. का.आ. 3663(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 26.07.2018
30. का.आ. 5258(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 12.10.2018
31. का.आ. 4149(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 19.11.2019
32. का.आ. 4778(अ)/आर्.र्स्ट्तु/गन्ना, ददनांक 30.12.2020
MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(Department of Food and Public Distribution)
ORDER
New Delhi, the 31st May, 2021
S.O. 2071(E).––In exercise of the powers conferred by section 3 of the Essential Commodities Act,
1955 (10 of 1955), the Central Government hereby makes the following Order further to amend the
Sugarcane (Control) Order, 1966, namely:––
1. (1) This Order may be called the Sugarcane (Control) Amendment Order, 2021.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. In the Sugarcane (Control) Order, 1966,––
(a) in clause 2,––
(i) for sub-clause (c), the following sub-clause shall be substituted, namely:––
‗(c) ―factory or sugar factory‖ means any premises including the precincts thereof in any part of
which sugarcane is crushed and either sugar is manufactured by vacuum pan process or at its own
option, ethanol is manufactured from sugarcane juice or sugar or sugar syrup or molasses, including
B-Heavy molasses;‘;4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(ii) for sub-clause (i), the following sub-clause shall be substituted, namely:––
‗(i) ―producer of sugar‖ means a person carrying on the business of manufacturing sugar by
vacuum pan process or at its own option, manufacturing of ethanol from sugarcane juice or sugar
or sugar syrup or molasses, including B-Heavy molasses;‘;
(b) in clause 3, in sub-clause (1), for Explanation (3), the following Explanation shall be substituted,
namely:-
‗Explanation (3).–– For the purpose of this order, ―ethanol‖ includes rectified spirit, special de-
natured spirit, extra neutral alcohol, absolute alcohol, anhydrous de-natured ethanol, fuel grade
ethanol or any other form of ethyl alcohol.‘;
(c) in clause 6B, in sub-clause (2), the following proviso shall be inserted, namely:––
―Provided that the requirement of submission of performance guarantee is not required in case of a
factory set up to produce only ethanol from sugarcane juice or sugar or sugar syrup or molasses
including B-Heavy molasses.‖;
(d) in clause 6C,––
(i) in sub-clause (1), for the words ―shall be three years‖, the words ―shall, except in the case
of production of only ethanol from sugarcane juice or sugar or sugar syrup or molasses including
B-Heavy molasses, be three years‖ shall be substituted;
(ii) after sub-clause (2), the following sub-clause shall be inserted, namely:––
―(3) In the case of a factory set up to produce only ethanol from sugarcane juice or sugar or sugar
syrup or molasses including B-Heavy molasses, the stipulated time for taking effective steps as
specified in Explanation 4 to clause 6A shall be three years from the date of filing of the Industrial
Entrepreneur Memorandum, failing which the Industrial Entrepreneur Memorandum shall stand
derecognised:
Provided that in case where production of ethanol does not commence within the stipulated
time, the Chief Director (Sugar), Directorate of Sugar and Vegetable Oils may, after taking into
consideration the progress made by the project proponent with respect to arrangement of land for
the project, obtaining of environmental clearance and sanction ordisbursement of loan by the bank,
give extension of one year for implementing the Industrial Entrepreneur Memorandum and
commencement of commercial production thereof.‖.
[F. No. 3(3)/2018-SP-I]
SUBODH KUMAR SINGH, Jt. Secy.
Note : The principal Order was published in the Gazette of India, Extraordinary, vide number G.S.R. 1126/
Ess.Com./Sugarcane, dated the 16th July, 1966 and was subsequently amended vide:
1. G.S.R. 35/Ess.Com./Sugarcane dated 05.01.1967
2. G.S.R. 1591/Ess.Com./Sugarcane dated 17.10.1967
3. G.S.R. 945/Ess.Com./Sugarcane dated 18.05.1968
4. G.S.R. 1456/Ess.Com./Sugarcane dated 02.08.1968
5. G.S.R. 620(E)/Ess.Com./Sugarcane dated 08.04.1970
6. G.S.R. 402(E)/Ess.Com./Sugarcane dated 25.09.1974
7. G.S.R. 492(E)/Ess.Com./Sugarcane dated 12.09.1975
8. G.S.R. 542(E)/Ess.Com./Sugarcane dated 27.10.1975
9. G.S.R. 484(E)/Ess.Com./Sugarcane dated 26.07.1976
10. G.S.R. 799(E)/Ess.Com./Sugarcane dated 13.09.1976
11. G.S.R. 815(E)/Ess.Com./Sugarcane dated 24.09.1976
12. G.S.R. 913(E)/Ess.Com./Sugarcane dated 09.12.1976
13. G.S.R. 62(E)/Ess.Com./Sugarcane dated 02.02.1978[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 5
14. G.S.R. 197(E)/Ess.Com./Sugarcane dated 28.03.1978
15. G.S.R. 427(E)/Ess.Com./Sugarcane dated 03.07.1981
16. G.S.R. 79(E)/Ess.Com./Sugarcane dated 24.02.1982
17. G.S.R. 695(E)/Ess.Com./Sugarcane dated 09.09.1983
18. G.S.R. 903(E)/Ess.Com./Sugarcane dated 29.11.2000
19. G.S.R. 113(E)/Ess.Com./Sugarcane dated 20.02.2003
20. G.S.R. 204(E)/Ess.Com./Sugarcane dated 22.03.2004
21. S.O. 1940(E) dated 10.11.2006
22. S.O. 1309(E)/Ess.Com./Sugarcane dated 31.07.2007
23. S.O. 2198(E)/Ess.Com./Sugarcane dated 28.12.2007
24. S.O. 2984(E)/Ess.Com./Sugarcane dated 29.12.2008
25. S.O. 2665(E)/Ess.Com./Sugarcane dated 22.10.2009
26. S.O. 33(E)/Ess.Com./Sugarcane dated 07.01.2010
27. G.S.R. 2787(E)/Ess.Com./Sugarcane dated 24.08.2016
28. S.O. 3093(E)/Ess.Com./Sugarcane dated 30.09.2016
29. S.O. 3663(E)/Ess.Com./Sugarcane dated 26.07.2018
30. S.O. 5258(E)/Ess.Com./Sugarcane dated 12.10.2018
31. S.O. 4149(E)/Ess.Com./Sugarcane dated 19.11.2019
32. S.O. 4778(E)/Ess.Com./Sugarcane dated 30.12.2020
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