Context:

Union Cabinet, chaired by Prime Minister Narendra Modi, approved the modification of the Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran).

More in the News:

• This initiative aims to align with the latest advancements in biofuels and attract significant investment.
• The modified scheme implementation period of the scheme has been extended by five years, now lasting until 2028-29.
• The scheme now covers advanced biofuels derived from lignocellulosic feedstocks (agricultural and forestry residues, industrial waste, synthesis gas, algae).

Eligibility for Projects: 

• "Bolt-on" plants and "Brownfield projects" are now eligible, allowing them to utilize their existing infrastructure and expertise.

About Pradhan Mantri JI-VAN Yojana: 

• Scheme launched to encourage the setting up of second-generation (2G) biofuel plants.
• Scheme Implementation Agency: The Centre for High Technology (CHT) under the Ministry of Petroleum and Natural Gas (MoP&NG).

Aims:  

• To provide financial support to Integrated Bioethanol Projects using lignocellulosic biomass and other renewable feedstock.

Key Term:

• Lignocellulosic biomass: It refers to plant biomass that is composed of cellulose, hemicellulose and lignin. For example: cereal straw, forest residues, etc.

Focus on Innovation: 

• Project proposals featuring new technologies and innovations will receive preference, promoting diverse technological approaches in the biofuel sector.

Objectives: 

• The scheme provides farmers with a remunerative income, tackles environmental pollution, creates local jobs, and bolsters India’s energy security while supporting the Make in India Mission.
• The Government of India's commitment to promoting advanced biofuels through the Pradhan Mantri JI-VAN Yojana reflects its dedication to a sustainable and self-reliant energy sector.
• It aims to facilitate the blending of ethanol in petrol, which has significantly increased over the years. The initiative is crucial for achieving India’s ambitious target of net-zero GHG emissions by 2070, thereby contributing to a greener future.

Background on Ethanol Blending Programme

• Ethanol Blending Increase: From 38 crore litres (ESY 2013-14) to 500 crore litres (ESY 2022-23), with blending percentage rising from 1.53% to 12.06%.
• Target: Achieve 20% ethanol blending by ESY 2025-26.
• Capacity Requirement: 1100 crore litres of ethanol needed; 1750 crore litres of distillation capacity required.

Focus on 2G Ethanol

• Alternate Sources: Emphasis on 2nd Generation (2G) Ethanol from surplus biomass, agricultural, and industrial waste.
• Financial Assistance: Pradhan Mantri JI-VAN Yojana notified on 7th March 2019 for 2G Bio-ethanol projects.

Notable Projects:

• Under the scheme, the first 2G Ethanol Project by Indian Oil Corporation at Panipat, Haryana (inaugurated August 2022).
• The other 2G commercial projects being set up by BPCL, HPCL and NRL at Bargarh (Odisha), Bathinda (Punjab) and Numaligarh (Assam) respectively, are also nearing completion.