Assam Ethanol Production Promotion Policy, 2021

Ethanol is comparatively less polluting and offers equivalent efficiency at lower cost than petrol. Blending locally produced ethanol with petrol strengthens energy security, lets local enterprises and farmers participate in the energy economy, and reduces vehicular emissions. Following the Government of India's National Policy on Biofuels, 2018 and its Ethanol Blended Petrol (EBP) programme, Assam has introduced this policy to make ethanol manufacturing more attractive to investors.

With rising sugarcane production and other agricultural surplus, Assam is well placed for first-generation (G1) ethanol plants. The policy provides added State incentives to industrial units producing fuel-grade ethanol as a bio-fuel for blending with petrol and diesel.

The policy targets the growth of green-field new 100% ethanol manufacturing units in the State, with remunerative returns to investors, farmers and stakeholders:

• •Allow ethanol production from all feedstocks permitted under the National Policy on Biofuels, 2018 and by the National Biofuel Coordination Committee.
• •Offer fiscal benefits and an enabling environment for investment in fuel-grade standalone new / green-field ethanol units.
• •Increase incomes of farmers producing the feedstock / raw material used for ethanol manufacturing.
• •Create local employment opportunities through promotion of new ethanol industries.

Only green-field standalone distilleries (single-feed or dual-feed) producing 100% fuel-grade ethanol and supplying 100% of their output to Oil Marketing Companies (OMCs) under the EBP programme are eligible. Ethanol from such units may not be sold to any buyer other than OMCs.

Eligible 100% green-field standalone ethanol units are entitled to the following ethanol-specific State incentives — each stated to be in addition to benefits under the Industrial & Investment Policy of Assam 2019 and NEIDS 2017:

Additive by design: Dovetail with the Industrial & Investment Policy of Assam 2019 (State) and North East Industrial Development Scheme 2017 (Central) is expressly allowed. Eligible ethanol units also receive:

(a) Industrial & Investment Policy of Assam, 2019 (State Layer)

(b) North East Industrial Development Scheme, 2017 (Central Layer)

• •BIS Compliance: Bio-ethanol production must comply with standards set by the Bureau of Indian Standards under the National Policy on Biofuels, 2018 (including I.S. 2796:2001).
• •False Declaration / Violation: Incentives are recoverable from the date of availing, with interest compounded annually at 18% per annum.
• •Diversion Penalty: If a unit diverts its facility to produce anything other than fuel-grade ethanol supplied to OMCs under EBP, incentives are recoverable from the date of availing with 18% per annum compounded interest as arrears of land revenue.
• •Nodal Agency: Industries & Commerce Department is the Nodal Department, with the Commissioner of Industries & Commerce as Nodal Officer.