Now Reading: Government Approves Rs 4,687 Crore Ethanol Interest Subsidies
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Government Approves Rs 4,687 Crore Ethanol Interest Subsidies
The government has approved Rs 4,687 crore in interest subsidies for eligible ethanol projects, junior petroleum minister Suresh Gopi told Parliament on Monday. It has released Rs 2,075 crore to Nabard since…
The Story in Brief
The government has approved Rs 4,687 crore in interest subsidies for eligible ethanol projects, junior petroleum minister Suresh Gopi told Parliament on Monday. It has released Rs 2,075 crore to Nabard since 2022-23 for disbursal under the schemes.
The government will cover 6% interest, or half the rate charged by lenders, whichever is lower, for five years on loans used to build distilleries or expand capacity. Gopi also said half of ONGC’s planned 1.75 million-tonne strategic petroleum reserve at Mangaluru will be reserved for strategic use.
The Indian Opinion
The subsidy is not proof that ethanol will quickly reach every household, despite that claim circulating around the announcement. Nor does the approved amount equal money already spent: the minister put releases since 2022-23 at Rs 2,075 crore. The fair test is whether new capacity lifts ethanol blending without disrupting food supplies or raising fuel costs. Future parliamentary updates should show project-wise disbursals, operating capacity and blending levels.
Source: energy.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
