Overview
Ethanol, a biofuel produced primarily from
agricultural crops such as sugarcane, maize, and wheat, is increasingly being used as an alternative to gasoline. The production of ethanol has grown significantly due to its role in reducing carbon emissions and promoting sustainable fuel sources. In India, the government has also mandated blending ethanol with petrol, further driving the demand for this eco-friendly fuel.
Scalability & Profitability
The ethanol production business is highly scalable, especially in regions with abundant raw materials such as sugarcane and maize. Profit margins in ethanol production can range from
15% to 30% depending on the cost of raw materials, technology used, and government incentives. The rise of biofuels and increasing support for ethanol-blended petrol further contribute to the industry’s profitability.
Eligibility Criteria
- Facility Setup: Requires fermentation and distillation equipment, including fermenters, evaporators, and distillation columns.
- Environmental Compliance: The business must comply with environmental guidelines to ensure sustainable ethanol production and waste management.
Where You Can Apply for Subsidies
- National Biofuels Policy: Government schemes provide financial assistance for setting up ethanol plants.
- MSME Schemes: Financial support for machinery, raw materials, and working capital.
Project Cost & Subsidy
The cost of setting up an ethanol production unit generally ranges from
INR 50 Lakhs to INR 5 Crores, with subsidies available up to
30% of the total project cost.
To apply for the Food Processing Scheme, the following mandatory documents are required for new enterprises (Individuals/Firms) as outlined in the manual
1. PAN Card of concerned/all promoters.
2.Aadhaar Copy & Photo of all promoters/guarantors.
3. Address Proof: Any of the Officially Valid Documents (OVD) such as:
o Utility bill (not more than two months old) from any service provider (Electricity, telephone, post-paid mobile phone, piped gas, water bill).
o Property or Municipal tax paid receipt.
o Ration Card (Individual).
o Driving Licence
o Aadhaar Card.
o Voter ID Card.
4. Details of the site where the unit is to be established, including whether it is owned/rented/leased, along with proof (Lease/rent agreement should be for more than the loan repayment period).
5. Photocopy of Bank
6. Estimates and Quotation of all capital expenditure and machinery and equipment to be purchased. Statement/Bank Passbook for the last 6 months.
For existing enterprises with a turnover of less than 1 crore, similar documents are required, including PAN Card, Aadhaar, address proof, and site details.
If you need more specific information or additional documents, please let me know!
