Ethanol Production Promotion Policy, 2021 (Effective from 17.03.2021 to 31.03.2025)

[Hebenet]

Eligibility

 Only standalone distilleries (single feed or dual feed) producing 100% fuel grade Ethanol which will be developed as a Greenfield project shall be eligible
for the incentive under this Policy

 The units will have to supply 100% of their Ethanol to Oil Manufacturing
Companies (OMCs) under the Ethanol Blending Programme (EBP) of the Government
of India.

 At the time of Financial Clearance, the Units will submit either (i) a copy of
the tripartite agreement entered into among the Unit, their Bankers, and Oil
Marketing Companies (OMCs), or (ii) purchase orders from Oil Marketing
Companies (OMCs) for sourcing Ethanol manufactured by the Unit.

 Only those Units which are set up on ZLD (Zero Liquid Discharge) basis
shall be considered under this Policy

Note:
The cost incurred in setting-up Captive Power Plant and Effluent Treatment Plant
(ETP) shall be included within the Approved Project Cost
Incentives under this policy

 Capital Subsidy :
15% of the Cost of Plant and Machinery or Rs. 5.00 cr, whichever is lower.
Additional 5% for Special Class Investors i.e. Scheduled Castes (SC),
Scheduled Tribes (ST), Extremely Backward Castes (EBC), Women,
Differently abled, War-widows, Acid attack victims and Third gender
entrepreneurs

 Stamp Duty and Registration Fees:
100% Exemption

 Land Conversion Fees:
100% Exemption

 Interest Subvention:
At 10% of the Term loan for a period of five years, the upper limit is 50% of
Approved Project Cost, maximum Rs. 20 Cr

 Tax-Related Incentives:
100% SGST reimbursement and 100% Electricity Duty reimbursement) for a
period of five years, the upper limit being 100% of the Approved Project Cost under

Bihar Industrial Investment Promotion Policy, 2016

 Employment Cost Subsidy:
50% reimbursement (in the case of male workers)and 100% reimbursement (in
case of female workers) of expenditure on account of contribution toward ESI
and EPF scheme for a period of 5 years for new units for those employees
who is the domicile of Bihar?

The maximum limit for reimbursement will be Rs.1000/- per month for SC/ST and
women employee and Rs. 500/- per month for general employee
 Skill Development Subsidy:
Rs 20,000 per employee/ Bihar Skill Development Mission (BSDM) rates,
whichever is lower for the training of employees/ staff who are domicile of Bihar

Read More:-Ethanol Production Promotion Policy, 2021