PM JI-VAN YOJANA

1. Background

• Government of India launched Ethanol Blended Petrol (EBP) programme in 2003 for undertaking the blending of ethanol in Petrol to address environmental concerns due to fossil fuel burning, provide remuneration to farmers, subsidize crude imports and achieve forex savings. 
• The Ministry of Petroleum & Natural Gas has targeted to achieve a 10% blending percentage of Ethanol in petrol by 2022. 
• Presently, EBP is being run in 21 states and 4 UTs of the country.
• Under the EBP programme, OMCs are to blend up to 10% of ethanol in Petrol. 
• To meet the 10% ethanol blending target with a projected demand for petrol in 2021-22, about 450 crore litres of ethanol would be required. 
• The estimated production of bioethanol in the country is around 300 crore litres, a large part of which is required for potable alcohol and chemical industries and the balance is used for Ethanol Blending Petrol (EBP) programme.
• The present policy allows procurement of ethanol produced from molasses and non-food feedstock like cellulosic and lignocellulosic material including the petrochemical route.
• Despite efforts of the Government such as higher ethanol prices and simplification of the ethanol purchase system, the highest ever ethanol procurement stands around 150 crore litres during Ethanol supply year 2017-18 which is sufficient for around 4.22% blending on a Pan India basis. 
• Therefore, an alternate route viz. Second Generation (2G) Ethanol from biomass and other wastes are being explored by MoP&NG to bridge the supply gap for the EBP programme. In this direction, "Pradhan Mantri JI-VAN Yojana" is being launched as a tool to create 2G Ethanol capacity in the country and attract investments in this new sector.

2. Objectives

The current scheme envisages the setting up of 12 Commercial scales Second Generation (2G) Bioethanol projects and 10 demonstration scale 2G Bioethanol projects based on non-food biomass feedstocks and other renewable feedstocks. 

The objectives of the scheme are given below:

• Establish commercially viable projects for 2G Ethanol production.
• Provide remunerative income to farmers for their otherwise waste agriculture residues.
• Address concerns about environmental pollution caused by the burning of biomass/ agriculture residues. d
• Help in meeting the targets envisaged in the Ethanol Blended Petrol (EBP) programme promoted by the Government of India & Government of India's vision of a 10% reduction in import dependence by way of reducing the use of fossil fuels.
• To create rural & urban employment opportunities.
• To contribute to Swachh Bharat Mission by supporting the aggregation of non-food biofuel feedstocks such as waste biomass and urban waste.
• Indigenisation of second-generation biomass to ethanol technologies.

3. Benefits of the implementation

The ethanol produced by the scheme beneficiaries will be mandatorily supplied to Oil Marketing Companies (OMCs) to further enhance the blending percentage under EBP Programme.

Apart from supplementing the targets envisaged by the Government under the EBP programme, the scheme will also have the following benefits:

• Meeting the Government of India's vision of reducing import dependence by way of substituting fossil fuels with Biofuels.
• Achieving the GHG emissions reduction targets through progressive blending/ substitution of fossil fuels.
• Addressing environmental concerns caused due to burning of biomass/ crop residues & improve the health of citizens.
• Improving farmer income by providing them remunerative income for their otherwise waste agriculture residues.
• Creating rural & urban employment opportunities in 2G Ethanol projects and Biomass supply chain.
• Contributing to Swacch Bharat Mission by supporting the aggregation of non­food biofuel feedstocks such as waste biomass and urban waste.
• Indigenizing of Second Generation Biomass to Ethanol technologies.