Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-07032025-261496
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 68] NEW DELHI, THURSDAY, MARCH 6, 2025/PHALGUNA 15, 1946
MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(Department of Food and Public Distribution)
NOTIFICATION
New Delhi, the 6th March, 2025
F.No.1(10)/2018-SP-I.—The Central Government with a view to increase production of ethanol and its
supply under Ethanol Blended with Petrol (EBP) Programme, especially in the surplus season and thereby to improve
the liquidity position of the sugar mills enabling them to clear cane price arrears of the farmers notified the scheme
namely "Scheme for extending financial assistance to sugar mills for enhancement and augmentation of ethanol
production capacity" vide Notification No. S.O. 3523(E), dated 19.07.2018. Thereafter, schemes for extending
financial assistance to sugar mills & molasses based standalone distilleries for enhancement and augmentation of
ethanol production capacity were notified on 08.03.2019 vide Notifications No. S.O. 1227(E) & S.O. 1228(E).
Further, vide Notifications No. S.O. 3135(E) & S.O. 3136(E) dated 15.09.2020, a small window was opened for 30
days for inviting applications under the scheme from molasses based stand alone distilleries and from sugar mills.
Further vide notification No. S.O 148 dated 14.01.2021 scheme “For extending financial assistance to project
proponents for enhancement of their ethanol distillation capacity or to set up distilleries for producing 1st Generation
(1G) ethanol from feed stocks such as cereals (rice, wheat, barley, corn & sorghum), sugarcane, sugar beet etc."
notified. Further, vide Notification No. 1(10)/2018-SP-I dated 22.04.2022 scheme “For extending financial assistance
to project proponents for enhancement of their ethanol distillation capacity or to set up distilleries for producing 1st
Generation (1G) ethanol from feed stocks such as cereals (rice, wheat, barley, corn & sorghum), sugarcane, sugar beet
etc." was notified.
Now, the Central Government hereby notifies the following modified scheme namely- “Scheme for
extending financial assistance to Co-operative Sugar Mills (CSMs) for conversion of their existing sugarcane based
feedstock ethanol plants into multi-feedstock based plants to use grains like Maize and Damaged Food Grains (DFG)
for enhancement and augmentation of ethanol production capacity".
(1) Eligibility
Assistance under the Scheme shall be available to the entrepreneurs for:
a) The opening of new window will be exclusively for Cooperative Sugar Mills across the country only for
conversion of their existing sugarcane based feedstock ethanol plants into multi-feedstock based plants to
use grains like Maize and DFG.
b) The Window will only be for Cooperative Sugar Mills which have existing/running ethanol plant having
valid Consent to Operate (CTO) and Petroleum and Explosives Safety Organization (PESO) license.
(2) Assistance under the Scheme
I. Interest subvention @ 6% per annum or 50% of rate of interest charged by banks/National Cooperative
Development Corporation (NCDC)/ Indian Renewable Energy Development Agency Limited (IREDA)/
Non-Banking Financial Companies (NBFCs)/any other financial institutions which are eligible for re-
finance from NABARD, whichever is lower, shall be borne by the Central Government for five years
including one year moratorium against the loan availed by project proponents.
II. Interest subvention under the Scheme shall be provided on loan amount sanctioned and disbursed in
respect of each project based on the proposed capacity conversion into multi-feedstocks plants, limited to
the in-principle approval by Department of Food and Public Distribution (DFPD).
III. Interest subvention would be available to only those Cooperative Sugar Mills, which will supply at least
75% of ethanol produced from their converted distillation capacity into multi-feed plants to Oil Marketing
Companies (OMCs) for blending with petrol.
IV. Assistance shall not be available to those Cooperative Sugar Mills, which have availed benefits under any
other Scheme of Central Government for the same project
(3) Submission of application
For availing assistance under the Scheme, the Cooperative Sugar Mill would be required to submit an
application-cum-proposal within 6 months from the date of Notification of the Scheme through online on the
National Single Window System (NSWS) portal (http://www.nsws.gov.in/).
(4) Appraisal/Approval of applications
DFPD will constitute a Screening Committee to scrutinize the applications received under the proposed Scheme
for Cooperative Sugar Mills. The said Committee shall scrutinize the applications keeping in view the
parameters as deemed necessary. In case of sugar mills having Government dues, in-principle approval would be
accorded only after clearance of Government dues. The proposals recommended by the Screening Committee
will be put up to Secretary (F& PD) for approval.
(5) Modalities of the Scheme
a) After scrutinizing the applications-cum-proposals, DFPD will accord in-principle approval and recommend
such approved proposals to the lending banks/financing institutions for considering sanction of loan.
Banks/NCDC/IREDA/NBFCs/any other Financial Institutions which are eligible for re-finance from
NABARD would be at liberty to sanction/release the loan as per their commercial norms/policies and in
compliance with regulatory guidelines, including the restructuring guidelines, as notified by RBI from time to
time.
b) The Applicant should get the loan disbursed from the Banks/NCDC/IREDA/ NBFCs/any other Financial
Institutions which are eligible for re-finance from NABARD, within one year from the date of in-principle
approval of DFPD, failing which the in-principle approval for the project shall stand cancelled. Further, the
project should be completed within 2 years from the date of disbursement of 1st instalment of loan from
Banks/NCDC/IREDA/NBFCs/any other Financial Institutions which are eligible for re-finance from
NABARD.
c) The applicant should adhere to the time line as specified by DFPD and update progress every month, failing
which the in-principle approval for the project may be cancelled by DFPD.
d) The disbursement of loan under the Scheme shall be in a separate account so that the utilization of the money
for the said purpose is easily monitored.
(6) Modalities for payment of Interest Subvention
a) Payment of interest subvention on loan amount under the Scheme will be limited to only 5 years including
one year moratorium period.
b) The benefit of interest subvention will be provided by Government of India only if the account of Applicant
Cooperative Sugar Mill is Standard and will not be available as long as account is NPA. The Cooperative
Sugar Mill will be responsible for repayment of interest including penal interest for the period of default
along with the principal. Further, banks will be free to take necessary action against the defaulting borrowers
as per banking norms and applicable regulatory guidelines.
c) In the event of surplus cash flow with the Cooperative Sugar Mills, accelerated payments may be decided by
the Banks/NCDC/IREDA/NBFCs/ any other Financial Institutions which are eligible for re-finance from
NABARD and the interest subvention liability of DFPD towards loan account would accordingly get
reduced.
d) The Department of Food and Public Distribution (DFPD) will release the interest subvention amount on
quarterly basis in advance to the nodal bank NABARD. The interest earned on the interest subvention paid in
advance shall be adjusted in the next quarterly installment.
(7) Project Completion Certificate
"The concerned Cooperative sugar mills shall submit Consent to Operate duly issued by the Central Pollution
Control Board/State Pollution Control Board/ Competent Authority of State Government. Cooperative Sugar
Mills availing loan for conversion of existing single feed-stock based ethanol plant into multi-feedstock based
plants shall submit a certificate duly verified by the concerned State Government Authority or the Chartered
Engineer certifying that the conversion of the existing single feed distillery to multi feed ethanol distillery has
been completed and production/enhanced production of ethanol has commenced and Zero Liquid Discharge
(ZLD) has been achieved through the method proposed at the time of submitting application for such purpose.
Any failure to submit such certificate shall lead to non reimbursement of interest subvention by the Central
Government.
(8) Utilization Certificate
"The concerned Cooperative Sugar Mills shall submit Utilization Certificate for the sanctioned loan amount
within 6 months of the completion of the project, duly certified by the Chartered Accountant, certifying that the
loan amount has been utilized for the purpose specified in the Scheme. For cases where Utilization Certificate
have been submitted beyond 6 months of completion of the project, such cases will be considered based on
justified reasons and relaxation, if any, for delay in submission of Utilization Certificate would be considered by
DFPD on merit of such cases. Any failure to submit the Utilization Certificate shall lead to non-reimbursement
of interest subvention by the Central Government."
(9) Where the Central Government is of the opinion that it is necessary or expedient to do so, it may, by order and
for reasons to be recorded in writing modify any of the provisions of this Scheme.
ASWANI SRIVASTAVA, Jt. Secy.
APPLICATION FORM
Application for scheme for extending financial assistance for co-operative sugar mills under modified ethanol
interest subvention scheme for conversion of their existing sugarcane based feedstock ethanol plants into multi-
feedstock based plants to use grains like maize and DFG.
A. Pre-requisite Information
+-------------------------------------------------------------------------+--------+
| Are you a Co-operative Sugar Factory with existing sugarcane based | YES/NO |
| ethanol distillery? | |
+-------------------------------------------------------------------------+--------+
B. Details of the Project Proponents
+-------------------------------------------------------------------------+--------+
| Name of Organization | |
+-------------------------------------------------------------------------+--------+
| Name of Plant | |
+-------------------------------------------------------------------------+--------+
| Address 1 | |
+-------------------------------------------------------------------------+--------+
| Address 2 | |
+-------------------------------------------------------------------------+--------+
| Pin code | |
+-------------------------------------------------------------------------+--------+
| State | |
+-------------------------------------------------------------------------+--------+
| District | |
+-------------------------------------------------------------------------+--------+
| Sub-District | |
+-------------------------------------------------------------------------+--------+
| Block | |
+-------------------------------------------------------------------------+--------+
| Village | |
+-------------------------------------------------------------------------+--------+
| Email | |
+-------------------------------------------------------------------------+--------+
| Mobile Number | |
+-------------------------------------------------------------------------+--------+
| Alternate Mobile Number | |
+-------------------------------------------------------------------------+--------+
| Plant Code | |
+-------------------------------------------------------------------------+--------+
| Date of Commencement of Ethanol Production of the Sugar Mill/Existing | |
| Distillery | |
+-------------------------------------------------------------------------+--------+
| Production capacity of Ethanol of the existing distillery, (in KLPD) | |
+-------------------------------------------------------------------------+--------+
| Number of Days of Operation / Annum of existing distillery, if any | |
+-------------------------------------------------------------------------+--------+
| GST No. | |
+-------------------------------------------------------------------------+--------+
| Status of SDF Dues, if any | |
+-------------------------------------------------------------------------+--------+
C. Information relating to proposal for conversion of existing sugarcane based feedstock ethanol plants
into multi-feedstock based plants
+-------------------------------------------------------------------------+-------------------------------+
| Proposed feedstock for conversion to Multi feed ethanol plant | Option Maize/DFG/FCI rice/Any |
| | Other Feedstock |
+-------------------------------------------------------------------------+-------------------------------+
| Technology for ZLD Systems approved by CPСВ | |
+-------------------------------------------------------------------------+-------------------------------+
+-------------------------------------------------------------------------+--------+
| Capacity proposed to be converted into multi feed plant (in KLPD) | |
+-------------------------------------------------------------------------+--------+
| Financial assistance requested/to be requested from Banks/Financial | |
| Institutions for the project (in Cr) | |
+-------------------------------------------------------------------------+--------+
| Whether SDF assistance or assistance from any other Department been | |
| availed for same project? | |
+-------------------------------------------------------------------------+--------+
| Proposed days of operations of the plant after conversion to multi feed | |
+-------------------------------------------------------------------------+--------+
| Proposed date for completion of conversion of plant to multi feed | |
+-------------------------------------------------------------------------+--------+
D. Details of the supporting documents to be uploaded.
+-------------------------------------------------------------------------+---------------+
| Consent to Operate (CTO) Certificate number issued by CPCB/SPCB | |
+-------------------------------------------------------------------------+---------------+
| CTO Certificate upload | PDF Upload |
+-------------------------------------------------------------------------+---------------+
| PESO License number | |
+-------------------------------------------------------------------------+---------------+
| PESO License upload | PDF Upload |
+-------------------------------------------------------------------------+---------------+
| Latitude of the plot | |
+-------------------------------------------------------------------------+---------------+
| Longitude of the plot | |
+-------------------------------------------------------------------------+---------------+
| Environment Clearance Certificate Number, if available | |
+-------------------------------------------------------------------------+---------------+
| Environment Clearance Certificate Date | |
+-------------------------------------------------------------------------+---------------+
| EC upload | PDF Upload |
+-------------------------------------------------------------------------+---------------+
E. Sanction and Disbursement details for the project
+-------------------------------------------------------------------------+---------------+
| Amount of loan already sanctioned / In- principle approval already given| |
| by Banks/Financial Institutions for conversion to multi-feed based | |
| ethanol plant (Rs. in Crore), if applicable | |
+-------------------------------------------------------------------------+---------------+
| Loan sanction letter, if applicable | PDF Upload |
+-------------------------------------------------------------------------+---------------+
| Disbursement availed for loans sanctioned from Banks/Financial | |
| Institutions for conversion to multi-feed based ethanol plant (Rs. In | |
| Crore), if applicable | |
+-------------------------------------------------------------------------+---------------+
| Name of Bank / FI, if applicable | |
+-------------------------------------------------------------------------+---------------+
| Date of first disbursement | |
+-------------------------------------------------------------------------+---------------+
| Certified Bank Statement of Disbursement | PDF Upload |
+-------------------------------------------------------------------------+---------------+
| Total Disbursement (Rs. in Crore) | |
+-------------------------------------------------------------------------+---------------+
F. Details of sale of Ethanol to OMCS
+-------------------------------------------------------------------------+---------------+
| Whether any Agreement for sale of ethanol has been signed with OMCS? | |
+-------------------------------------------------------------------------+---------------+
| If yes, upload copy of Agreement | PDF Upload |
+-------------------------------------------------------------------------+---------------+
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
GORAKHA NATH YADAVA Digitally signed by GORAKHA NATH YADAVA
Date: 2025.03.07 13:54:32 +0530