Objective of the Policy

This policy has been framed with the objective of promoting the production of ethanol in the state. The policy provides incentives to make ethanol production more lucrative to attract more private investment in the state in this sector. 

Operating Period of the Policy

From 2021 onwards

Eligible Units:

Green-field standalone Ethanol manufacturing units investing more than INR 10 Crore on the date of commercial production and producing from all food grains under National Policy on Biofuels, 2018 except sugarcane (molasses) and Mahua

Incentives under the Policy

1. Production linked incentive of INR 1.50 per litre Ethanol supplied to OMCs and manufactured in the unit upto 100% investment in P&M in 7 years from date of commercial production.
2. 100% rebate on stamp duty and registration charges to units on purchase of land.
3. 100% exemption from Electricity duty to units for 5 years from date of operation.
4. Quality certification discount of 50% of cost or INR 1 lakhs whichever is less.
5. Reimbursement of patent charges @100% upto INR 5 lakhs.
6. Capital subsidy is provided upto 50% on equipment of Zero Liquid Discharge facility subject to maximum INR 1 Cr.
7. Infrastructure development subsidy of 50% upto INR 1 Cr for developing private land or undeveloped government land.
8. Mandi Tax exemption of 100% for a period of 5 years on grains procured for Ethanol production.
9. Employment assistance for providing employment to differently abled persons is also offered as follows:
1. 100% reimbursement of skill development expenses upto INR 5000/- per employee for 3 months from date of joining.
2. EPF/ESI assistance of employee’s contribution- maximum INR 6000/- per month for 5 years
3. Medical insurance premium reimbursement for 5 years

View/Download Full Policy 

Scheme for Promotion of Ethanol and Bio-fuel Production