Cabinet nod to Assam Ethanol Production Promotion Policy
From Sandeep Sharma
GUWAHATI: Assam cabinet has approved the Assam Ethanol Production Promotion Policy 2021, state industry minister Chandra Mohan Patowary said here on Thursday.
“The policy will be valid up to March 31, 2026,” Patowary said addressing a press conference at a city hotel here.
Assam is the second state in the country to bring out an ethanol policy and is among the pioneers in this line, Patowary said.
He said that the ministry of petroleum and natural gas formulated the National Policy on Biofuels 2018 with an aim to increase the usage of biofuel in the energy and transformation sector.
“The objectives of the policy comprise incentivization of production of ethanol from all feedstocks permitted under NEP 2018,” Patowary said.’
The policy will offer fiscal benefits and provide an enabling environment for the promotion and investment in fuel-grade standalone green-field ethanol manufacturing units by facilitating and financially incentivizing potential investors, he said.
The other objectives of the policy are to increase the income of farmers producing feed-stock/raw materials for use in ethanol manufacturing and creation of local employment opportunities through promotion of the new ethanol units, he also said.
The standalone green-field ethanol producing industrial units will be provided incentives under the policy, he further said.’
Capital subsidy will be provided at 20% of the cost of plant and machinery with maximum Rs 5 crore in addition to the 30% capital subsidy under the provision of CCIIAC under NEIDS 2017.
Power subsidy will be provided at Ts 1 per unit in addition to Rs 2 per unit under the Industrial and Investment Policy of Assam 2019 for a period of 5 years from the date of production, subject to a maximum of Rs 75 lakh per year.
Five per cent interest subsidy will be provided on working capital loan for 5 years, subject to an overall ceiling of Rs 50 lakh per year in addition to the 2% interest subsidy offered under the Industrial and Investment Policy of Assam 2019 and 3% interest subsidy under NEIDS 2017.
Under the policy, 100% state GST reimbursement will be provided for a period of 5 years, upper limit being 250% of fixed capital investment in addition to reimbursement of the central share of the CGST, IGST and Income Tax offered under NEIDS 2017 for a period of 5 years, the minister said.
Under the policy, there will be 100% exemption of land conversion of land to industrial class.
There will be employment incentive in the form of reimbursement of expenditure on account of provident fund contribution of permanent resident employees for 5 years.
There will be skill development subsidy of Rs 20,000 per employee or ASDM rates, whichever is lower, the incentive being applicable only for training of permanent resident employees.
Besides, dovetailing with the Industrial and Investment Policy of Assam, 2019 and NEIDS 2017 shall be allowed under the policy, he further said.
Only green-field standalone 100% fuel-grade ethanol producing industries which supply 100% of their produced ethanol to oil manufacturing companies under the blending with petrol and diesel shall be eligible for the incentives under this policy, the minister also said.
The industries & commerce department of the Assam government shall be the nodal department and it will be responsible for the implementation of this policy, he added.
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