Bihar brings Ethanol Production Promotion Policy 2021

On 16-03-2021, the Bihar state cabinet approved the Ethanol Production Promotion Policy 2021.

Yesterday, while addressing the state legislature, the Deputy CM of the state Renu Devi announced, Bihar now becomes the country’s first state to have its Ethanol Production Policy.

The Deputy Chief Minister announced the policy in the absence of Bihar Industry Minister Shahnawaz Hussain as he is busy right now campaigning for Bengal Assembly Elections 2021. Last week, while addressing the legislative assembly, the minister revealed 20 investors have proposed to set up ethanol production units in the state.

The Bihar Ethanol Production Promotion Policy 2021 will run under National Policy on Biofuels 2018 that means the state must produce ethanol from the below-mentioned sources.

1. B and C heavy molasses.
2. Grains unfit for human consumption.
3. Sugarcane Juice
4. Sugar
5. Sugar Syrup
6. Surplus Rice and Maize

What are all the benefits an Investor would get under the Bihar Ethanol Production Promotion Policy 2021?

Below are benefits that an Investor would get under Bihar Ethanol Policy 2021.

1. A Capital subsidy of 15% of the plant’s cost.
2. A Captial Subsidy of maximum Rs. 5 crores for Machinery.
3. The capital subsidy is an addition to the incentives already provided under Bihar Industrial Investment Policy 2016.
4. Investors belonging to special categories like SC, ST, EBC, Women, Physical Disabled, Acid Attack Victims, War Widows, and Third Gender will get the capital subsidy of 15.75 percent of the plant’s cost as well as a maximum of Rs. 5.25 crore for Machinery.
5. Investors will get the capital subsidy even if they are getting incentives under any Central Government Policy.

Having a conversation with Hindustan Times over the Phone call, Bihar Industry Minister Shahnawaz Hussain said the Investors would get the Stage 1 clearance in a week. The minister also said the Investors must apply for stage 1 approval by June 30, 2021, and then apply for financial support by June 30, 2022.

Stage 1 comprises BIADA land allotment application, private land registration and conversion, licenses, and NOC.