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Ethanol- Ethanol is ethyl alcohol found in alcoholic beverages, and it is used in motor fuel. The Union Cabinet has now extended the soft loan scheme to include distilleries with sugar cane and more to meet the ambitious target of 20% ethanol. Also, the government has set the target to blend 20% ethanol with petrol by 2022. Bihar's Ethanol Production Promotion Policy, 2021, encourages new standalone ethanol manufacturing facilities by granting a 15 percent capital subsidy up to a maximum of 5 crores.
In the next five years, Rs. 2 lakh crore ethanol economy is to be produced. Ethanol produced from sugarcane is less polluting. Moreover, its utilization offers farmers an alternative source of revenue and damaged food grains, such as wheat and broken rice, and agricultural waste.