New Delhi: Government of India will fund 4573 crores through interest subvention to encourage ethanol production from rice, wheat, barley, maize and sugarcane. The government wants to increase farmers' income by promoting ethanol blending in petrol. The government says that on one hand it will increase the income of farmers and on the other hand, the cost of importing oil will also be reduced.
Petroleum Minister Dharmendra Pradhan said that the government wants to meet the target of 20% ethanol blending in petrol. It is intended to achieve this target by 2030. This will not only increase the income of farmers but will also reduce oil imports. It will also be better for the environment. He said that for such projects, he will bear the interest subvention for five years. There will be a concession for one year on such a loan.
The government had made a provision of Rs 8640 crore towards interest subvention to encourage ethanol production. Under this, approval has been given to give interest subvention of Rs 4,687 crore. At present, 426 crore litres of ethanol are produced in the country. The target is to increase it to 1750 crore litres by 2030. For this, the government will need to invest at least 40 thousand crores.
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