Ranchi: The state government works on the production policy and promotion of new ethanol Jharkhand (JepP) 2021 to lay the foundation to assign biofuel manufacturing units in the state.
On Tuesday, the Ministry of Industry held its first meeting with stakeholders in a city hotel here to seek their advice in making a policy document that was insightful and investor friendly.
The Secretary (Industry) of Puja Singhal led the stakeholder meeting, which was attended by representatives from 24 companies from Jharkhand and neighboring countries.
Ethanol was distilled from sugar cane, molasses, rice starch, labyrinth and agro-waste.
While Jharkhand does not produce sugar cane and molasses planting, entrepreneurs who want to invest here must mainly get their raw material from Bihar, Uttar Pradesh, and other countries.
In accordance with estimates, there are 166 distillation throughout the country which can produce 2.6 billion liters of industrial class ethanol which can be used as fuel, beverages and chemicals.
Ethanol is used in fossil fuels such as gasoline and diesel to reduce carbon emissions, which in turn decrease air pollution.
Draft policies, which have been accessed by TOI, promises incentives to independent distillers to be developed as a greenfield project and will produce 100% ethanol fuel rate.
The unit must also produce ethanol from raw materials permitted based on the national policy of Biofuels, 2018, the design of the state policy rang.
This policy requires that employers will enjoy the liberation of 100% stamp duty on the land registration they will buy directly from landowners.
New micro, small and medium (MSMEs) units (MSMEs) and non-MSME units will be provided by interest subsidies of 5% per year if there is a loan from public financial institutions or banks.
“Apart from the capital subsidy of Rs 10 Crore for the UMKM unit and RS 50 Crore for non-MSME units has also been proposed,” Singhal said at the meeting.
“The unit will be given a subsidy for skills development once by RS 13,000 per employee.
However, subsidies will be expanded for employees who are domicile Jharkhand,” he added.
A senior official said, “We have entrepreneurs from New Delhi, Assam and Chhattisgarh attending meetings of stakeholders with the state entrepreneurs.”