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Pradhan Mantri Jl-VAN Yojana

Pradhan Mantri Jl-VAN Yojana

Pradhan Mantri Jl-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana is all about giving a financial hand to projects that turn things like wood and plants into bioethanol. Making this happen is the Centre for High Technology (CHT), a tech group working under the Ministry of Petroleum and Natural Gas (MoP&NG).


  • The Government of India initiated the Ethanol Blended Petrol (EBP) program in 2003 to tackle environmental issues linked with fossil fuel consumption, support farmers, reduce reliance on crude imports, and save foreign exchange reserves.
  • The Ministry of Petroleum & Natural Gas aimed to reach a 10% blending ratio of ethanol in petrol by 2022. Currently, the EBP is operational in 21 states and 4 Union Territories across the country.
  • Oil Marketing Companies (OMCs) must blend ethanol up to 10% in petrol. Experts estimate that to meet the 10% blending target by 2021-22, Oil Marketing Companies (OMCs) will need about 450 crore liters of ethanol. However, the country’s estimated bioethanol production is only around 300 crore liters.
  • Despite government efforts like offering better ethanol prices and simplifying procurement systems, the highest procurement of ethanol recorded was about 150 crore liters in the 2017-18 supply year.
  • This amount was sufficient for approximately 4.22% blending nationwide. Therefore, the Ministry of Petroleum & Natural Gas is exploring other options, such as Second Generation (2G) Ethanol from biomass and waste, to bridge the supply gap for the Ethanol Blended Petrol (EBP) program.
  • To encourage the creation of 2G Ethanol capacity and attract investments in this sector, the government is launching the “Pradhan Mantri JI-VAN Yojana.”


The current scheme envisages setting up of 12 Commercial scale 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 of environmental pollution caused by burning of biomass/ agriculture residues.
  • Help in meeting the targets envisaged in Ethanol Blended Petrol (EBP) programme promoted by Government of India & Government of India vision of 10% reduction in import dependence by way of reducing the use of fossil fuels.
  • To create rural & urban employment opportunities.
  • To contribute to Swacch 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.

Financial Implications

  • The JI-VAN Yojana has a total financial allocation of Rs.1969.50 crore covering the period from 2018-19 to 2023-24.
  • This fund designates Rs.1800 crore to support 12 commercial projects. Moreover, it earmarks Rs.150 crore to back 10 demonstration projects.
  • The remaining Rs.9.50 crore will be allocated to the Centre for High Technology (CHT) to cover administrative charges.


The plan is to provide financial support to help set up 12 large-scale and 10 smaller demonstration projects for producing Second Generation (2G) ethanol. This support will be in the form of Viability Gap Funding (VGF).

  • Phase-I (2018-19 to 2022-23): wherein six commercial projects and five demonstration projects will be supported.
  • Phase-II (2020-21 to 2023-24): wherein remaining six commercial projects and five demonstration projects will be supported.

The Project developers interested in availing benefits of the scheme, shall be submitting their proposal for review by Scientific Advisory Committee (SAC) of MoP&NG.


The scheme beneficiaries must supply the ethanol they produce to Oil Marketing Companies (OMCs) as a requirement to boost the blending percentage under the EBP Programme. Apart from supplementing the targets envisaged by the Government under EBP programme, the scheme will also have the following benefits:

  • Government of India’s vision to lessen our reliance on imports by transitioning from fossil fuels to biofuels. This shift not only supports our energy needs but also reduces our carbon footprint.
  • By gradually blending or substituting fossil fuels with biofuels, we’re actively working towards meeting our greenhouse gas emission reduction targets. This is crucial for a sustainable future.
  • Tackling environmental concerns stemming from the burning of biomass and crop residues is a priority. Not only does this help preserve our environment, but it also enhances the health and well-being of our citizens.
  • Farmers are seeing a positive impact on their income as we offer them fair compensation for their agricultural residues, which would otherwise go to waste. This not only benefits farmers but also promotes a circular economy.
  • The 2G Ethanol projects and biomass supply chain initiatives are creating employment opportunities both in rural and urban areas. This is vital for inclusive growth and economic development across the country.
  • As we support the aggregation of non-food biofuel feedstocks like waste biomass and urban waste, we’re contributing to the Swacch Bharat Mission. This not only helps keep our surroundings clean but also promotes sustainable waste management practices.

Read Also: Future of Ethanol Blending in India

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