Government Schemes லேபிளுடன் இடுகைகளைக் காண்பிக்கிறது. அனைத்து இடுகைகளையும் காண்பி
Government Schemes லேபிளுடன் இடுகைகளைக் காண்பிக்கிறது. அனைத்து இடுகைகளையும் காண்பி

3 ஜன., 2022 in

India's Ethanol growth story - porul

   


India is the world’s third-largest energy-consuming nation and a significant part of India’s energy requirement is met through the oil which continues to rely on imports primarily. India’s share in global energy consumption is set to double by 2050. Rising energy demand and high reliance on imports pose significant energy security challenges. It also leads to massive foreign currency outflow. Further, excessive use of fossil fuels leads to higher carbon emissions and associated health concerns. 

   Domestically produced ethanol is a potential opportunity to reduce reliance on oil imports by blending it with conventional fossil fuels for consumption.

   India started blending ethanol in petrol on a pilot basis in 2001. The ethanol was produced as a by-product during the process of making sugar from sugarcane. However, despite the potential, no significant progress was made under the ethanol programme and ethanol production remained stagnated until recently when transformative reforms were carried out. The results are set to help not only the economy but transform farmers’ income and recharge the rural economy.


   There are two ways of manufacturing Ethanol, they are



Landscape of Opportunities

Ethanol Industry is expected to grow by 500%

   By 2025, at a 20% blending level, ethanol demand will increase to 1016 Crore litres. Therefore, the worth of the ethanol industry will jump by over 500% from around 9,000 Crore to over 50,000 Crore

Ethanol distillation capacity to grow by more than three times to 1,500 Crore litre annually

   Financial assistance scheme was introduced by DFPD during 2018-2021 to increase ethanol production capacity. • 895 proposals with a loan amount of `70,419 Crore. • Estimated 165 LMT of surplus grain to be utilized annually from 2025 to produce ethanol which would result in 30,000 crore payment to farmers. • Launch of new vehicles compatible to run on E20 fuel from 2023 and flex-fuel vehicles from 2024. This will attract new investment and create employment opportunities.

But where does the demand come from?

Ethanol Blended Petrol (EBP) Programme

   EBP was launched in January 2003. In 2006, the Ministry of Petroleum and Natural Gas directed the Public Sector Oil Marketing Companies (OMCs) to sell 5% EBP in 20 states and 4 UTs. Even though the programme started early it faced multiple inherent challenges leading to slow adoption and growth. But the programme did not meet success.

But why did it not meet success?

  • High taxation of ethanol, rate of 18% applicable
  • Procurement challenges due to infrastructure and multiple tenders in a given supply year
  • Non-inclusion of conversion of grain to Ethanol, restricting grain-based distilleries to participate in EBP
  • Limited availability of feedstock (raw material)
  • Constraints on the part of state government

How did the government overcome past defects?

  • Interest Subvention Scheme to improve and increase ethanol production capacity in the Country. Government to provide interest (interest subvention), for a period of 5 years. GST on Ethanol lowered from 18% to 5%
  • New sources of sugar & sugar syrup were introduced for ethanol production at a fixed remunerative price
  • Published “Ethanol Procurement Policy on a long-term basis under EBP Programme”
  • Allowed conversion of B heavy molasses, sugarcane juice and damaged food grains to ethanol. Fixed differentiated ex-mill ethanol price and sourcing of raw material utilised for ethanol production given priority. Marked the beginning of differentiated ethanol pricing, based on raw material utilised for ethanol production.
  • OMCs have increased their ethanol storage capacity from 5.39 Crore litres in November 2017 to 16.9 Crore litres by December 2020, thereby providing ethanol storage cover of over 20 days at their depots. The amount spent by OMCs is approximately `200 Crore – This is an ongoing process.

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What is SVAMITVA Scheme ?

SVAMITVA (Survey of Villages and Mapping with Improvised Technology in Village Areas) is a central sector scheme that has been designed to offer rural India a comprehensive inhabited property ownership solution. On April 24, 2020, National Panchayati Raj Day, the Honorable Prime Minister announced the start of the Scheme's Pilot Phase.

It aims to offer rural India a comprehensive property certification solution.
This plan makes use of drone technology and Continuously Operational Reference Stations (CORS) to map the land parcels in rural areas where people live.
Throughout the nation, the mapping will be carried out in stages over the course of four years, from 2020 to 2024.

BACKGROUND:

Since independence, government surveys of rural land have been restricted to agricultural land. In several states, the inhabited areas of villages- known as "abadi" land in Uttar Pradesh and Madhya Pradesh, "lal dora" land in Punjab and Haryana, "gaothan" land in Maharastra and Gujarat, among others- have largely remained out of the purview of such surveys. As a result, many village communities across India do not possess record of rights, and their claim of ownership over land in "abadi" area depends largely on their actual possession of the property.

The demarcation of rural inhabited land is done using Drone Surveying technology with the collaborative efforts of the Ministry of Panchayati Raj, Survey of India, National Informatics Centre (NIC), State Revenue Departments and State Panchayati Raj Departments. This will provide the "record of rights" to village household owners in the form of Property Cards/Title Deeds.

Various stages in SVAMITVA Scheme





Impacts that it can create on society


According to estimates, it will have the following advantages for landowners and rural landscapes:

INCLUSIVE SOCIETY:

Throughout history, scholars and development specialists have linked ‘Access to Property Rights’ with ‘Improvement in socioeconomic standards of vulnerable populations in villages’. The SVAMITVA Scheme aims to enable the same.

LAND GOVERNANCE:

Land is an essential resource for any economic activity aimed at creating of material wealth in the world. The lack of a clearly demarcated Abadi area has led to a high number of land-conflict cases. As per reports, millions of people suffer the impact of land conflicts across India and the World. The SVAMITVA Scheme aims to address the root cause of disputes at the local level.

SUSTAINABLE HABITS:

Creation of High-resolution digital maps for better Gram Panchayat Development Plans (GPDP) leading to improvement across infrastructures like schools, community health centres, rivers, street lights, roads etc. through efficient allocation of funds and increased accessibility.

ECONOMIC GROWTH:

The key outcome is to help people monetize their property as collateral. Furthermore, a boost to India’s economic growth through streamlining of Property tax, in States where it is levied leading to an increase in investments and ease of doing business.

Let's see the benefits that people get Before and after SVAMITVA