MP policy for ethanol.pptx

NSEPCCONSULTANTSINDI 593 views 6 slides Aug 28, 2022
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Ethanol Project: Mega Factories
Department for Promotion of Industry and Internal Trade’ has created NSWS Portal, an initiative of the Government of India that promotes ‘Blending Of Ethanol’ with Petrol products so that ...


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GOVERNMENT OF MADHYA PRADESH Scheme for Promotion of Ethanol and Bio- fuel Production DEPARTMENT OF INDUSTRIAL POLICY & INVESTMENT PROMOTION (DIPIP) GOVERNMENT OF MADHYA PRADESH

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Y1 S 1 1 ac Government of Madh y a Pradesh Department oflndustrial Polic y & In ves tment Promotion Scheme for ecial Financial Assistance for Ethanol and Bio- Fuel Production I. Preamble Madh ya Pradesh is progressively making policie s to attract inv estment and to create an investor frie ndl y enviro nm en t in th e state . Measures like Single Window C learan ce , on lin e payments , online verification, se lf - certification , time- bound approval of licens es/ clearances , availability of information online, standard operating procedures for approvals , deem ed approvals , etc. are being adopted by various departments and government agencies . These initiatives will result in creating a conducive industrial ecosystem in the state b y setting up industries across the state and generate employment opportunitie s . In v iew of the above , this Special Financial Assistance has been introduced after extensive deliberation with industry experts, industry associations, investors , subject experts etc. This policy is proposed to make Ethanol manufacturing in the State more attractive for potential investors. Background: The National Policy on Biofuels, 2018 approved in May 2018 is aimed at achieving multiple outcomes such as addressing environmental concerns, reducing import dependency and providing boost to agriculture sector. The National Policy on Biofuels, 2018 allowed production of Ethanol from B- heavy Molasses, Sugarcane Juice, and Damaged food grains like wheat, broken rice etc which are unfit for human consumption. In adherence to this, Government of India has fixed a target of 10% blending of fuel grade ethanol with petrol by 2022 and 20% by 2025. Government of Madhya Pradesh is introducing an "Special Financial Assistance Policy for Ethanol and Bio- fuel". The scope of the Policy package encompasses following categories of fuels as "Ethanol and Bio- Fuel" which can be used as transportation fuel or in stationery applications. Bio ethanol: Ethanol produced from biomass such as: I) Sugar content such as sugar cane, sugar beet, sweet sorghum etc Starch containing materials such as com, cassava, rotten potatoes, algae etc Cellulosic materials such as bagasse, wood waste, agricultural and forestry residues, or Other renewable resources like industrial waste Biodiesel: A methyl or ethyl ester of fatty acids produced from non- edible vegetable oils, acid oil, used cooking oil or animal fat and bio- oil. Advanced Biofuels: Fuels which are (1) produced from lignocellulosic feedstocks (i.e. agricultural and forestry residues, e.g. rice & wheat straw/com cobs & stover/ bagasse, woody biomass), non- food crops (i.e. grasses, algae), (,i,$ - ) f\ : � 1111< 1 r 1 n n c r m , m 1 .. \ . \ ..--- - ·

1. Produ c tion Linked Fiscal Assistance INR 1.50 per Litre of Ethanol supplied to OMC's, and manufactured in the unit,upto a ma x imum limit of 100% investment in Plant & Machinery , in 7 years from the date of commercial production 2. StampDuty& Re g istration 100% Reimbursement of Stamp Duty and Re g istration Charges will be given to units on 3. 3 . 2. o r i nd u s t r _ i a w l as t ea ndr esi du e s t r eams , (2) h avi n g l o CO2 emi ss ion or h igh G H G r e du c ti o n a n d o n o t co mp ete w i t h food cro p s for l a n du se. Fuel ss uch a Seco nd e n era tt o n (2G Et h a n o l , Drop- in f u e l s , a l gae based 3G biofue l s , b1 - C N G , b1 - methan o l , D1 M et h y l E th e r (D M E) de ri ve d fr o m bio - m e th a n o l bi o h y d ro g e n , d rop in fu e l s w ith M S W as th e sou r ce/ fee d stock m ate r ia l will quali fy as " Ad v an c ed Biofuels ". 2 .4 . An y Other , as declared by Centre / Sta t e Government from t im e t oti m e. 3. 1. a Objective: T he policy aims to achieve the foll m,;, ing ob j ect iv e s fort he ove r all growth and development of E thanol manufacturing industries in th eSt a t e wit h broad agenda to ensur e farmer inclusion in country ' s energye co n o m y : Allow production o f E thanol from all grain based permitted under N a t i o n al Policy on Biofuels , 2018 and by the National Biofuel C o o rdinat ion Committee. Promote, facilitate and financially incentivize investment in fuel- grade standalone green field Ethanol manufacturing units as well as existing distilleries planning to expand in the area of ethanol production in Madh y a Pradesh Increase incomes of farmers producing grain based raw material which ma y be used for Ethanol manufacturing . Generate local employment opportunities through promotion of new Ethanol industries . Eligibility : Green- field standalone Ethanol manufacturing units investing more than INR 10 Crore on the date of commercial production . Units which are producing fuel- grade Ethanol and are supplying minimum 75% of Ethanol to Oil Manufacturing Companies (OMCs) under Ethanol Blending Programme (EBP) of Government of India. Ethanol production from all food grains except sugarcane (molasses) and Mahua, under National Policy on B i ofuels, 2018 and by the National Biofuel Coordination Committee shall be allowed in the Stat of Madhya Pradesh . Existing units, expanding or diversifying into Ethanol Production , should have clearly demarcated unit , to be eligible for assistance under this package . T _ he quantum of assistance to expansion or diversification units shall be at par with new standalone units. All units which achieve commercial date of production before 31st March 2024 shall be · eligible for incentive under this policy. 5. Subsidy, Concessions and Incentive: 2 "C! ) . mr,, 1¥ anl'r1J, ZiT · fcl·•fTlf / - -

purchase of land Charges E lectricity Duty 1 00 % exemption fo r 5 years from the date of com m e n ce m e nt of t h e co mm e rcial operation Quality Cert ification Reimbursement of 50 % of Qua li ty Certification cos t o r '{ 1 Lak h w hi c h eve r i s l ess . 5 . I Patent Charges I R e imbursement @ I 00% upto t 5 Lakh 6 . I Zero Liquid 1 50% capital sub s idy ori equipment for Zero Liquid Discharge Discharge facility s ubject to maximum t 1 Cr 7. I Infrastructure development subsidy 50% assistance subject to a maximum of INR · 1 crore each shall be provided for developing power , water & road infrastructure, if the investor acquires private land or gets undeveloped government land for setting up of the project. 8. \ Incentive to provide employment to differently abled persons . 100% reimbursement of skill development expenses upto INR 5000/- per employee for 3 months from date of joining. Employees PF/ESI assistance: Reimbursement of employee's contribution- maximum r 6000 / ­ per month for 5 years Medical insurance premium reimbursement for 5 years · 9. I Mandi Tax 100% Mandi Tax will be reimbursed for 5 years on procurement of grains for ethanol production. Incentive under Government of India Schemes Financial assistance offered under "The National Policy on Biofuels, 2018" shall be over and above the incentive, offered by the Government of Madhya Pradesh under " Scheme for Special Financial Assistance for Ethanol and Bio- Fuel Production " policy. Howsoever, the manufacturing unit will be able to avail incentives only under one policy at a time, from the state government. · Policy implementation & Guidelines . Madhya Pradesh Industrial Development Corporation (MPIDC) will be the nodal agency for implementation of this Policy. Plant and machinery means the investment made by the unit in plant, machinery, co- gen plant, buildings, shed, quality certification, testing laboratories, handling equipment, measurement equipment, safety equipment, generator set , pollution control devices, R&D equipment, transfonners, necessary maintenance equipment excluding investment made in land and dwelling units. Any clarification regarding the policy will be issued by DIPIP , GoMP from time to time . 3 1 '1 } ,- ) ni?rfi - qcl 1 i l• i T 11 \y - '

7.6 Incentive underhi s poli cy s h a ll b e p r o cesse d as per th e pr ovi s io n s of Madh ya Pradesh I dustnal Promotion Poli cy , 2 014 ( a s amended i n O c t 2020 ) or pre:alent indu s trial promotion polic y. . U itsappl y ing for incentiv e under thi s p o li cy s hall apply o n the Smgle Wmdow System of Madhya Pradesh ( http s :/ / in ves t.mp . gov . in ) . . fa unit gives false declaration for obtaining incenti v e under t he p hc y or incentive are availed by an ineligible unit , the amount of incen ive i s h _ able to be recovered from the date of availing of s u c h incentive with th e mtere S t compounded annually @ I 0% per annum . \J f . o r Y� I /(]SfcrT ' tl &.t\.l !l l ..::IB- i f.rcm fu"+ITI( 4