Changes aim to enhance efforts for meeting ethanol blending targets and emphasize on innovative technologies and novel feedstocks.

• The amount of ethanol blended with petrol has surged to over 500 crore liters in 2022-23, with a current blending rate exceeding 15%. 
• The government aims to reach a 20% blending target by the end of the 2025-26.

Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana

• Background: Launched in 2019 to provide financial assistance for development of 2nd Generation (2G) ethanol from surplus biomass and agricultural waste.
• It has supported the establishment of India’s first 2G ethanol plant by Indian Oil Corporation at Panipat.

Key Changes approved

• Extension of implementation period: by 5 years till 2028-29.
• Broadening scope: Include biofuels from lignocellulosic feedstocks such as agricultural residues, forestry waste, industrial by-products, and algae.
• Eligibility: “Bolt on” plants and “brownfield projects” also became eligible.

Significance of the change

• Financial support to multiple sectors; stable income for farmers through the sale of agricultural residues, mitigates environmental pollution, and strengthens India’s energy security and self-reliance. 
• Aligns with net-zero greenhouse gas emissions by 2070 and supports the Make in India initiative.