# Rs 4,687 crore ethanol subsidy cleared as shift to grains raises water concerns 2026-08-06T18:01:26+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The government has approved Rs 4,687 crore in interest subsidies for ethanol projects, junior petroleum minister Suresh Gopi told Parliament on Monday. The scheme covers a 6 per cent interest subvention for five years on loans for new distilleries or capacity expansion. Since 2022-23, Rs 2,075 crore has been released to Nabard for disbursal, he said. Gopi also said half of ONGC's 1.75-million-tonne strategic petroleum reserve at Mangaluru will be reserved for strategic use. India's ethanol mix has shifted, with grains now supplying 65-70 per cent of ethanol, overtaking sugarcane molasses, according to Athar Shahab of Zuari Industries. The change has sparked protests in Rajasthan, Madhya Pradesh, Punjab and Telangana over water use and pollution. Experts told Mongabay India that the country faces trade-offs between fuel, feed and water security, noting that unlike Brazil, India relies heavily on irrigated crops for ethanol. ## Coverage - energy.economictimes.indiatimes.com - india.mongabay.com Tags: ethanol, Nabard, petroleum, strategic reserves, subsidies Canonical: https://indianopinion.org/government-approves-rs-4687-crore-ethanol-interest-subsidies/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/government-approves-rs-4687-crore-ethanol-interest-subsidies/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.