West Bengal Ethanol Production Promotion Policy, 2021

IPI Branch
4, Abanindranath Tagore Sarani, Kolkata- 700 016

No. 140-ICE/O/IPI/GEN-MIS/03/2021 Dated 7th September, 2021


Whereas, the Government of West Bengal has been considering the importance of framing an Ethanol Production Promotion Policy for the State of West Bengal to bring in renewed focus in transportation fuel sector with minimal carbon emerging and it is the endeavour of the policy to promote ethanol manufacturing unit in the state through an enabling environment and to reduce import dependency in potable alcohol sector.

Whereas, the Government of West Bengal through its Cabinet Meeting held on 2nd September, 2021 has decided to bring a new Ethanol Production Promotion Policy 2021 for the State of West Bengal;

Now, therefore, the Governor in the interest of the public service, is pleased to hereby publish the Ethanol Production Promotion Policy 2021 for the State of West Bengal as given in the Schedule hereto annexed for information of all persons in good faith.

The Schedule

The West Bengal Ethanol Production Promotion Policy 2021

1. Preamble

Achieving rapid industrial economic growth along with minimal carbon footprint has been one of the priorities of the government. Majority of fossil fuel consumed in the country is now imported. The Government of India has notified the National Policy on Bio-fuels-2018 (NPB-2018) wherein, under the Ethanol Blended Petrol (EBP) Program, an indicative target of 20% blending of ethanol in petrol by 2025 was laid out. The current ethanol production capacity in India of 426 crore litres derived from molasses-based distilleries, and 258 cr. litres from grain-based distilleries is proposed to be expanded to 760 cr. litres and 740 cr. litres respectively. This would be sufficient to produce 1016 cr. litres of ethanol required for EBP and 334 cr litres for other uses.

West Bengals Rice Production in 2019-20 is 15569.7 thousand tonnes (as per last available data). In terms of State-wise comparison of Rice Production, West Bengal stood at 1st place in 2019-20. The major end user of broken rice in West Bengal may be identified to be animal feedstock segment, local purchase for domestic use, and to certain extent making local spirit.

Also, West Bengal has to import the ethanol requirement in Potable alcohol sector to the tune of 25%, although the state has three refineries at present. Encouraging ethanol production in the state, would reduce this dependence and make Bengal self-sufficient.

The industry would also create investment opportunities and provide employment to a large number of youths.

2. Vision

To make the state a preferred destination for ethanol manufacturing units.

3. Mission

3.1. To promote, facilitate and financially incentivize investment in fuel-grade standalone green-field Ethanol manufacturing units in the State, through an enabling environment.

3.2. To increase incomes of farmers, who are producing feed-stock/ raw material (produce which are used for Ethanol manufacturing).

3.3. To create local employment opportunities through promotion of new Ethanol industries.

4. Eligibility

All green-field fuel-grade ethanol producing units shall be eligible for the incentives under this policy.

5. Financial Incentives

5.1. Land Conversion fees

Waiver of land record mutation fees and land use conversion fees.

5.2. Stamp Duty

Exemption of Stamp duty and registration fees.

5.3. Electricity Duty

Waiver of electricity duty for 5 years from the start of production.

6. Non-financial Incentives

6.1. Water Supply

To ensure 24X7 uninterrupted water supply to the unit.

6.2. Electricity Supply

To provide uninterrupted 24X7 power supply to the units.

6.3. Skill Training

To provide funding for skill training under Utkarsh Bangla Scheme.

7. Governance

7.1. Policy Awareness and implementation

7.1.1. West Bengal Industrial Development Corporation (WBIDC) under Department of Industries, Commerce and Enterprise (IC&E) to be the nodal agency responsible for bringing awareness and implementation of this policy and providing handholding support to the investors in the State.

7.1.2. All MOCs, permissions and clearances required by Ethanol Manufacturing units will be processed through the Single Window Clearance (SWC) portal of ‘Silpa Sathi’.

7.1.3. Time bound and fast track processing of land mutation and conversion to industry by privately purchased lands by the prospective investors.

7.1.4. The commercial production will be commenced within 1 (one) year from the date of registration of the units under the policy.

7.2. Policy monitoring and grievance redressal.

7.2.1. The implementation of the policy will be reviewed from time to time by the Department of Industries, Commerce and Enterprise and necessary facilitation and course correction shall be undertaken as found necessary to achieve the objectives of this policy.

7.2.2. The department will also coordinate with all other stakeholder departments for smooth implementation of the policy.

8. Infrastructure support

WBIDC would develop a dedicated park for ethanol-based units with ready infrastructure, including water, power and sewerage for immediate setting up of units. The process being water intensive government will support in obtaining necessary connections/ permissions from the trunk infrastructure.

By order of the Governor

Secretary to the Government of West Bengal
Department of Industry, Commerce & Enterprises

No. 140-ICE dated 07.09.2021, Source

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