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NOTIFICATION

New Delhi, the 8th March, 2019

S.O. 1228(E).-Whereas· the Central Government with a view to increase production of ethanol and itssupply under Ethanol Blended with Petrol (EBP) Programme, especially in the surplus season and to extendfinancial assistance to molasses based standalone distilleries on lines similar to that extended to distilleriesattached with sugar mills, hereby notifies the. following scheme namely- "Scheme for extending financialassistance to molasses based standalone distilleries for enhancement and augmentation of ethanol productioncapacity"-

(1) Definition - Molasses based standalone distillery shall mean a distillery not integrated with any sugarmiJl or its any other ancillary unit and functioning on molasses as feed stock.

(2) Eligibility:- Only molasses based stand alone distilleries shall be eligible to apply under the scheme.Assistance under the Scheme shall be available:-

i) To set up new distilleries including expansion of the capacity' of the existing molasses based standalone distilleries,

ii) For increasing ethanol production by installing evaporation, incineration systems and other methods asapproved by the Central Pollution Control Board (CPCB) for achieving Zero Liquid Discharge (ZLD) in adistillery .

iii) For adding ethanol plants, molasses and ethanol storage capacities with their existing distillery.

(3) Assistance under the Scheme:

i) Interest subvention @ 6% per annum or 50% of rate of interest charged by banks/National CooperativeDevelopment Corporation (NCDC)/ Indian Renewable Energy Development Agency Limited (IREDA) ,whichever is lower, on the loans to be extended by banksINCDCIIREDA, shall be borne by the CentralGovernment for five year.

ii) Interest subvention under the scheme in respect of 2(i) to 2(iii) above shall be provided on loan amountsanctioned and disbursed in respect of each project based on the proposed capacity, limited to the in-principleapproval accorded by DFPD.

(4) Submission of application:

For availing assistance under the Scheme, the molasses based stand alone distilleries would be requiredto submit an application-cum proposal in the prescribed Proforma (Annexure-I) to the Chief Director (sugar),Directorate of Sugar and Vegetable Oils, Department of Food & Public Distribution (DFPD), Krishi Bhawan,New Delhi within 30 days from the date of notification of the scheme, i.e by 8th April, 2019.

THE GAZETIE OF INDIA : EXTRAORDINARY [PARTrr-8EC. 3(ii)]

(5) Appraisal/Approval of applications:

DFPD will constitute two Committees viz. Screening Committee and Approval Committee. Theproposals received under the Scheme would be placed before Screening Committee and Approval Committeeand thereafter in-principle approval would be accorded by DFPD to the eligible applicants. The said Committeesshall scrutinize the applications keeping in view the parameters like availability of molasses for the project orany other parameter as deemed necessary to assess the viability of the project.

(6) Modalities of the Scheme:

i) After according in-principle approval to the applications-cum-proposals, DFPD will recommend suchapproved proposals to the lending banks for considering sanction of loan. BankslNCDCIIREDA would be atliberty to sanction/release the loan as per their commercial norms/policies and in compliance with regulatoryguidelines, including the restructuring guidelines, as notified by RBI from time to time.

ii) The applicant should get the loan disbursed from the bank within one year from the date of in principleapproval of DFPD, failing which 'the in principle approval for the project will stand cancelled. Further, theproject should be completed within two years from the date of disbursement of first instalment of loan frombank.

iii) While implementing their respective projects, the molasses based stand alone distilleries shall strive toseek convergence with the Make in India scheme of the Government for capacity addition/ up-gradation inethanol production.

iv) The disbursement of loan under the scheme shall be in a separate account so that the utilization of themoney for the said purpose is easily monitored.

v) The Department of Financial Services (DFS) will issue suitable instructions to theban.ksINCDC/IREDA to operationalise the scheme including appointment of a nodal bank.

(7) Modalities of payment of interest subvention

i) Payment of interest subvention on loan amount under the scheme will be limited to only 5 yearsincluding one year moratorium period.

ii) The benefit of interest subvention will be provided by the Government only if account of molassesbased stand alone distilleries is Standard and will not be available as long as account is NPA. The molassesbased stand alone distilleries will be responsible for repayment of interest including penal interest for the periodof default along with the principal. Further, bankslNCDCIIREDA will be free to take necessary action againstthe defaulting borrowers as per banking norms and applicable regulatory guidelines.

iii) In the event of surplus cash flow with the molasses based stand alone distilleries, accelerated paymentsmay be decided by the banklNCDCIIREDA and the interest subvention liability of DFPD towards loan accountwould accordingly get reduced.

iv) The Department of Food and Public Distribution (DFPD) will release the interest subvention amount onquarterly basis in advance to the nodal bank as appointed by DFS. The interest earned on the interest subventionpaid in advance shall be adjusted in the next quarterly instalment.

v) DFPD will work out the modalities of release of Interest Subvention in consultation with NABARD.

(8) Project Completion Certificate- The concerned molasses based stand alone distilleries shall submit acertificate duly verified by the Central Pollution Control Board certifying that zero liquid discharge has beenachieved through the method proposed at the time of submitting application for such purpose. The molassesbased stand alone distilleries availing loan to establish new distilleries or expansion of the existing distilleriesshall submit a certificate duly verified by the Excise Commissioner of the State concerned and the CharteredEngineer certifying respectively that the new distillery has been installed and has commenced production orexpansion of the existing distillery has been completed and enhanced production of ethanol has commenced.Any failure to submit such certificates shall lead to non-reimbursement of interest subvention by the CentralGovernment.

(9) Utilization Certificate: The concerned molasses based stand alone distilleries shall submit utilizationcertificate for the sanctioned loan amount within three months of the completion of the project, duly verified bythe respective Sugar/Cane Commissioners, Excise Commissioner or any other authority designated by the State

['l1fTT IT-~ 3(ii)]

Government certifying that the loan amount has been utilized for the purpose specified in the scheme. The saidauthorities shall also monitor the utilization of the loan. Any failure to submit the utilization certificate shall leadto non-reimbursement of interest subvention by the Central Government.

(10) Where the Central Government is of the opinion that it is necessary or expedient to do so, it may, at anytime modify any of the provisions of this Scheme.

[p. No.1 (l6)/2018-SP-IJ

SURESH KUMAR VASHISHTH, It. Seey.

AnnexureApplication cum proposal from molasses based stand-alone distilleries seeking financial assistance forinstallation of Evaporator and Incineration Boiler to achieve ZLD as well as addition of Distillationcolumnand storage capacity for Ethanol Production.

Part - A : Brief details of stand-alone distilleriesSI. No. Particulars

1 Name, address, e-mail/contact details of the existingDistillery

2 Existing Alcohol Production Capacity (in KLPD)

3 Whether Ethanol Production equipments are also installedwith the existing distilleries(if yes, also indicate the ethanol Production capacity)

4 Proposed System to be installed to achieve ZLD(Incineration Boiler or Bio-composting methods)

5 Whether reverse osmosis, evaporator and condensatepolishing unit is also proposed for installation with theproposed ZLD system.

6 If incineration boiler is proposed for installation, indicatethe capacity and working pressure of the proposed Boiler;

7 Normal working days per annum of the existing distillery

8 Proposed no of working days after installation of ZLDsystem

9 Average quantity of molasses per annum used in theexisting distillery during last three years.

10 Whether permission from CPCB has been obtained, if yes,please indicate the approved number of working days in ayear

11 Financial assistance requested for incineration boiler or anyother proposed method approved by CPCB for achievingZLD

12 Assistance requested for ethanol plant and storage capacity

13 Total assistance requested (sum of column No 11 & 12)

14 Name of the lending bank ( please indicate a maximum ofthree banks)

15 Indicate separately the estimated production of (i) alcohol

THE GAZEITE OF INDIA: EXTRAORDINARY [PARTII-SEC. 3(ii)]

and (ii) ethanol per annum after installation of ZLD (in kl)

16 Expected date of commencement of ethanol productionafter installation of ZLD system/ethanol columnlEthanolStorage capacity

Part- B : Brief requirement of proposed new molasses based stand-alone distillery

SI. No. Particulars

1 Name, address, e-mail/contact details of the existing distillery2. Capacity of the existing distillery(in KLPD) and normal

working days per annum

3. Production of alcohol including ethanol achieved during lastthree years

4 Ethanol Production Capacity of the proposed planttin KLPD)

5. Whether new plant is proposed in the same premises ofexisting distillery (if not, please indicate its distance from theexisting distillery)

6. Requirement of molasses per annum to achieve the proposedethanol production capacity

7. Proposed system to be installed to achieve ZLD (IncinerationBoiler or any other method approved by CPCB be indicated)

8. Total estimated project cost including ZLD system

9. Financial assistance requested

10. Name of the proposed lending Banks (A maximum of nameof 3 Banks may be indicated)

11 Expected date of completion of the project andcommencement of ethanol production

Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-l l 0064and Published by the Controller of Publications, Delhi-II 0054. A L0 K

KUMARDigitally signedby ALOK KUMARDate: 2019.03.1315:16:39 +05'30'