Now Reading: Rs 4,687 crore ethanol subsidy cleared as shift to grains raises water concerns
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Rs 4,687 crore ethanol subsidy cleared as shift to grains raises water concerns
Rs 4,687 crore ethanol subsidy cleared as shift to grains raises water concerns
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…
The Story in Brief
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.
The Indian Opinion
The ethanol push is sold as a win for energy security and farmer income. But the quiet shift from molasses to maize already pits fuel against feed and poultry, while the government offers Rs 4,687 crore in subsidies without a public lifecycle water audit. The protests in Hanumangarh and elsewhere are not anti-development; they are a demand for accountability. The test is simple: will the next tender include a mandatory water-stress assessment for each district before clearing grain-based distilleries?
Sources (2): energy.economictimes.indiatimes.com, india.mongabay.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
