ISMA sought subsidy from the government to increase ethanol production

14-Dec-2024 10:22 AM

ISMA sought subsidy from the government to increase ethanol production
The Indian Sugar Mills Association (ISMA) has approached the government with a proposal to boost ethanol production in India. Here are the key highlights of their request:
Subsidy Request:
ISMA has proposed a government subsidy of ₹35,000 crore to enhance ethanol production capacity by an additional 770 crore liters.
Current Production Capacity:
Total production capacity: 1,683 crore liters.
Contribution by source:
Molasses-based ethanol: 815 crore liters.
Grain-based ethanol: 742 crore liters.
Tax Relief Demand:
ISMA has urged the government to remove the 5% GST levied on vehicles utilizing ethanol to encourage its adoption.
Context
This move aligns with India's goal to reduce dependency on fossil fuels, promote renewable energy, and achieve the ethanol-blended fuel target under its E20 program, which envisions 20% ethanol blending by 2025.