Question : Setting up of Ethanol Plants

(a) whether the Government gives approval for setting up of ethanol plants, if so,
the details thereof;
(b) whether the Government proposes to set up ethanol plant in Bihar, if so, the
details thereof, if not, the reasons therefor?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF PETROLEUM &
NATURAL GAS
(SHRI RAMESWAR TELI)
(a): The entrepreneurs / project proponents are free to set up ethanol plants in any
part of the country without seeking any formal approval from the Government of
India. However, various statutory clearances from States/ Ministry of Environment
Forest and Climate Change (MoEF&CC) / State Pollution Control Boards
(SPCBs), etc. are required to be obtained during the course of setting up of the
ethanol plant. Besides, DFPD is implementing scheme for extending interest
subvention @ 6% p.a. or 50% of the interest charged by the banks whichever is
lower, for 5 years including 1 year moratorium period.
(b): The Central Government does not set up ethanol plants on its own in any part
of the country including Bihar. Central Government is however encouraging
setting up of Ethanol Plants.
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