The Union Cabinet on Wednesday approved a scheme to provide bank loans at lower rates to distilleries producing ethanol for doping in petrol, with a view to raising India’s ethanol production capacity to suck out surplus sugar as well as cut oil imports. 

Oil Minister Dharmendra Pradhan said the Government is targeting to more than double blending of ethanol in petrol to 20 per cent by 2030, for which domestic production capacity has to be augmented. Cabinet also approved a multi-modal logistics and transport hub (MMTH) at Greater Noida in Uttar Pradesh with a view to making India a strong player in the global value chain.

The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, approved a modified scheme for extending interest subvention to augment ethanol production capacity, he said.

The Government would bear interest subvention for five years, including one-year moratorium against the loan availed by project proponents from banks, at the rate of 6 per cent per annum or 50 per cent of the rate of interest charged by banks, whichever is lower.  The interest subvention would be available for setting up new as well as an expansion of existing molasses or grain-based distilleries and for units that will produce ethanol from other feedstocks such as sugar beet, sweet sorghum and cereals. 

“Previously, Rs 4,687 crore interest subvention scheme was approved and now Rs 4,573 crore has been sanctioned,” said Pradhan.

The Cabinet approved a multi-modal logistics and transport hub (MMTH) at Greater Noida in Uttar Pradesh with a view to making India a strong player in the global value chain.  The Union Cabinet also approved a proposal to set up industrial corridor nodes at Krishnapatnam and Tumakuru under CBIC, said Minister of Information and Broadcasting Prakash Javadekar.  “The proposals have a total estimated cost of Rs 7,725 crore and an estimated employment generation of more than 2.8 lakh persons,” he said.

The Cabinet also approved a Rs 3,000 crore project to turn Paradip Port into a world-class port by setting up a dock. The decision to set up a western dock was taken by the Union Cabinet in its meeting held on Wednesday, Ports, Shipping and Waterways Minister Mansukh Mandaviya said. Paradip port in Odisha is one of the 12 major ports under the control of the Centre.