Govt approves Rs 4,687 crore interest subsidy for ethanol projects

New Delhi: The government has so far approved ₹4,687 crore in interest subsidies for eligible ethanol projects under its various support schemes, junior petroleum minister Suresh Gopi told Parliament on Monday.

Under the schemes, the government bears interest subvention of 6% or 50% of the interest rate charged by lenders, whichever is lower, for five years on loans taken to set up new distilleries or expand existing ethanol production capacity. Since 2022-23, the government has released ₹2,075 crore to Nabard, the nodal agency for disbursing funds under the scheme, Gopi said.

The minister also said that half of the 1.75-mt strategic petroleum reserve to be developed by ONGC at Mangaluru will be earmarked for strategic use.