From now, the petrol you buy from the petrol pumps will contain 10% ethanol mixed with it in the form of Ethanol Blended Petrol(EBP). This ethanol will be produced in Assam. So, the government of Assam is helping ethanol producing companies to set up 7 ethanol plants in Assam.
Six out of seven ethanol plants have been provided with land in Industrial Development Corporation Industrial Parks. 2 units will be located in Industrial Growth Centre(IGC), Matia one unit each at Industrial Landbank in Sipajhar, ID Dhing, IGC Balipara and 1 near Assam Plastic Park, Tinsukia.
In this blog post, I will provide you with a basic idea of EBP and why it is used. I will provide you with the location of 7 Ethanol Plants in Assam. Moreover, I will provide you with details about the policy behind these ethanol plants in Assam -Assam Ethanol Production Promotion Policy, 2021.
What is Ethanol Blended Petrol(EBP)?
Ethanol(C2H5OH) is a hydrocarbon made from agricultural products like sugarcane, wheat, rice, etc. This ethanol can be mixed with petrol in small quantities to be used as fuel in vehicles. When ethanol is mixed or blended with petrol it is known as Ethanol Blended Petrol (EBP).
EBP is more environmentally friendly than petrol. The carbon emission is reduced by 33-35%. Moreover, the use of EBP will reduce import dependency on petrol.
Why are Ethanol Plants in Assam being set up?
If you have a vehicle, you might not know your petrol is mixed with ethanol. At present, you are using 8.5% Ethanol Blended Petrol(EBP). It has increased to 10% this year. By 2025 it will be increased to 20%. To meet this demand, ethanol plants in Assam are being set up.
Seven ethanol manufacturing companies came forward to set up their plant in Assam under Assam Ethanol Production Promotion Policy, 2021.
Benefit from Ethanol Plants in Assam
The cost of transporting ethanol to be blended with petrol will reduce. This will, in turn, reduce the cost of petrol. Along with this benefit, the following benefit will be directly and indirectly to the people of Assam.
- Cost of Petrol will be reduced
- 970 Kiloliters per Day (KLD) ethanol will be produced by these ethanol plants in Assam
- It will provide 1000 Direct Employment
- Moreover, 4000 Indirect Employment will be produced.
- Infrastructure development around the ethanol plants will eventually develop.
- Reduction in Carbon Emission by 33-35% when EBP will be used in Assam.
Location of Ethanol Plants in Assam
Out of 7, 6 have been allocated land in Industrial Development Corporation Industrial Parks. The location and address of 6 ethanol plants in Assam are listed below.
1. Industrial Growth Centre (IGC), Matia
Mornai, Revenue Circle – Matia, P.O. & P.S. – Mornai, Goalpara, Assam-783101.
Air: 115 KM from LGB International airport, Borjhar, Guwahati
Rail: 15.00 KM from Goalpara Town Railway station
Road: 130 km distance from Guwahati City. Excellent road link with entire North-Eastern States and rest of the country.
2. Industrial Landbank, Sipajhar
Bhutardol village near Sipajhar of Lokrai Mouza
3. Industrial Estate IPAL, Dhing
The Industrial Estate is located on the southern bank of the Brahmaputra River of Nagaon District. It is within the Dhing urban area connected from the district headquarters of Nagaon District at a distance of 26.00 KM via Nagaon- Dhing- Bhuragaon State Highway. It is also connected with Guwahati by a broad gauge railway.
4. Industrial Growth Centre (IGC), Matia
Mornai, Revenue Circle – Matia, P.O. & P.S. – Mornai, Goalpara, Assam-783101.
Air: 115 KM from LGB International airport, Borjhar, Guwahati
Rail: 15.00 KM from Goalpara Town Railway station
Road: 130 km distance from Guwahati City. Excellent road link with entire North-Eastern States and rest of the country.
5. Industrial Growth Centre (IGC), Balipara
Balipara, Sonitpur.
Air: 10 KM from Tezpur Airport
Rail: 7 KM from Balipara Railway Station.
Road: 200 KM from Guwahati, 15 KM from Tezpur town & 1.5 KM from NH-52
6. Near Assam Plastic Park, Tinsukia
Gelapukhuri, Tinsukia
Air: 45 kms from Dibrugarh Airport.
Rail: 5 Kms from Tinsukia Railway Station
Road: Distance from Tinsukia Town-4KM. Excellent Road link with entire North-East states and rest of the country.
Assam Ethanol Production Promotion Policy, 2021
Assam is the largest onshore petroleum producer in India. But, still, Assam depends on petroleum imports. The imports can be nulled if you start adding ethanol to petrol to make Ethanol Blended Petrol (EPB).
Moreover, Ethanol has the following properties to be used as fuel.
- Comparatively less polluting than petrol
- Offers equivalent efficiency at lower cost than petrol
Blending locally produced ethanol of Assam with petrol will do the following things
- Strengthen the country’s energy security,
- Enable local enterprises in Energy Economy
- Farmers to participate in the energy economy
- Reduce pollution from your vehicle.
So, the Govt. of Assam introduced the Assam Ethanol Production Promotion Policy, 2021 in line with National Policy on Biofuels, 2018.
Objectives of Assam Ethanol Production Promotion Policy, 2021
Assam Ethanol Production Promotion Policy, 2021 aims to achieve the following objectives by 2026.
- To allow production of Ethanol from all feedstocks permitted under National Policy on Biofuels, 2018 and by the National Biofuel Coordination Committee.
- To offer fiscal benefits and provide an enabling environment in Assam for the promotion and investment in, fuel-grade standalone new or green-field ethanol manufacturing units by facilitating and financially incentivising potential investors.
- To increase incomes of farmers producing feed-stock/ raw material for the ethanol plants in Assam. These raw material which may be used for Ethanol manufacturing.
- To create local employment opportunities through promotion of new Ethanol plants in Assam.
Incentives for Ethanol Plants in Assam by Government
All the 7 Ethanol Plants in Assam will get the following benefit and incentives will be provided by the Government of Assam.
Power Subsidy
Power Subsidy of ₹3/- per unit for a period of 5 years. The applicable date will be counted from the date of commencement of the ethanol plant production. The maximum subsidy will be ₹75 lakhs per annum.
Interest Subvention Incentive
10% of interest subsidy on working capital loan for 5 years subject to an overall of ₹50 lakhs per annum. The 10% can be broken up as listed below.
- 5% under Assam Ethanol Production Promotion Policy, 2021
- 2% under Industrial and Investment Policy of Assam, 2019
- 3% under NorthEast Industrial Development Scheme, 2017
Tax-Related Incentives
These 7 ethanol plants in Assam will get 100% SGST reimbursement for a period of 5 years. But, the upper limit will be 250% of Fixed Capital Investment. Moreover, reimbursement of Central Share of the CGST, IGST and Income Tax will be given for a period of 5 years.
Exemption of Land Conversion Fees
100% exemption of fees for conversion of a class of land to industrial land will be given to the 7 ethanol plants in Assam.
Employment Cost Subsidy
These 7 ethanol plants in Assam will get an employment cost subsidy for employees who are permanent residents of Assam. The employment cost subsidy includes the following.
- 50% reimbursement in case of male workers of expenditure on account of contribution toward ESI and EPF scheme for a period of 5 years
- 100% reimbursement in case of female worker of expenditure on account of contribution toward ESI and EPF scheme for a period of 5 years
- The maximum limit will be ₹1000/- per month per employee.
Skill Development Subsidy
These 7 ethanol plants in Assam will also get subsidies for training their employee. The subsidy will be ₹2000/- or ASDM rate which is lower. But the subsidy will be given to the employee who is a permanent resident of Assam.
Capital Subsidy
These 7 ethanol plants in Assam will also get a subsidy for their capital investment. The subsidies are as follows.
- Capital subsidy at 20% of the cost of Plant and Machinery,with maximum ₹5 crores
- 30% Capital Subsidy with maximum limit of INR 5 crores under provision of Central Capital Investment Incentive for Access to Credit (CCIIAC)
Conclusion
As we are heading to make 20% Ethanol Blended Petrol(EBP) by 2025, the production of local ethanol is vital for the economy of Assam. For this purpose, 7 ethanol plants in Assam are being set up with the help of the Assam Government. This will provide several benefits to the people of Assam as already discussed.
