Expansion of PM JI-VAN Yojana To Accelerate Advanced Biofuel Production

Syllabus: GS2/Govt Policy & Intervention; GS3/Environment

Context

• Recently, the Union Government has expanded the scope and timeline of the Pradhan Mantri Jaiv Indhan–Vatavaran Anukool Fasal Awashesh Nivaran (JI-VAN) Yojana, reaffirming its commitment to sustainable development and energy security. 

About PM JI-VAN & Its 2024 Upgrades

• It was launched in 2019 under the Ministry of Petroleum and Natural Gas (MoP&NG).
  • It is implemented by the Centre for High Technology (CHT) that operated under the MoP&NG.
• Financial Outlay: ₹1,950 crore (Total Allocation)
  • ₹1,800 crore for 12 commercial-scale projects
  • ₹150 crore for 10 demonstration-scale projects
• Support Mechanism: Viability gap funding and capital assistance to make projects commercially viable.

Objectives of the Scheme

• Establishment of commercial and demonstration-scale advanced biofuel projects using lignocellulosic biomass and other renewable feedstocks.
• Providing remunerative income to farmers for agricultural residues that would otherwise go to waste.
• Creating employment opportunities in rural and urban areas.
• Addressing air pollution caused by stubble burning and reducing soil and water pollution from municipal solid waste.
• Contributing to the Swachh Bharat Mission and supporting the Ethanol Blended Petrol (EBP) Programme.
• Reducing India’s dependency on crude oil imports and supporting the nation’s climate goals.

Key Biofuel Projects Under PM JI-VAN

• Second Generation (2G) Bio-Ethanol Projects: Indian Oil Corporation Ltd. (IOCL) has set up a 2G paddy straw-based feedstock bio-ethanol project at Panipat, Haryana.
  • A 2G bamboo-based biorefinery has been established at Numaligarh, Assam by Numaligarh Refinery Ltd., through Assam Bio-Ethanol Private Limited (ABEPL).
• Third Generation (3G) Ethanol Project: IOCL has commissioned a 3G ethanol plant at Panipat, utilizing refinery off-gas as feedstock — marking a leap towards innovative carbon utilization.

Policy Framework Supporting Biofuel Expansion

• The National Policy on Biofuels (Amended 2022) promotes the use of diverse feedstocks such as:
  • Damaged and surplus food grains (broken rice, maize, cassava, rotten potatoes).
  • Agricultural residues (rice straw, corn cobs, cotton stalk, sawdust, bagasse).
  • Sugarcane juice and molasses, regulated through the National Biofuel Coordination Committee (NBCC) to avoid food security conflicts.
• Feedstock utilization is calibrated annually based on availability, cost, market demand, and sustainability considerations.

Impact on Sugar and Maize Sectors

• Sugar Sector: In Sugar Season (SS) 2024–25, sugar production reached 340 LMT, with 34 LMT diverted for ethanol production.
  • Domestic sugar demand stood at 281 LMT, and ethanol production helped stabilize sugar inventories and ensure timely payments to sugarcane farmers.
• Maize Production Growth: Maize output increased by nearly 30%, from 337.30 LMT in 2021–22 to 443 LMT in 2024–25, driven by government encouragement for crop diversification from water-intensive crops like rice and sugarcane.

Achievements of the Ethanol Blended Petrol (EBP) Programme

• Since Ethanol Supply Year (ESY) 2014–15 up to October 2025, the EBP Programme has achieved:
  • Payments to farmers exceeding ₹1,36,300 crores.
  • Foreign exchange savings of more than ₹1,55,000 crores.
  • Net CO₂ reduction of approximately 790 lakh metric tonnes.
  • Substitution of over 260 LMT of crude oil imports.

Conclusion

• The Pradhan Mantri JI-VAN Yojana represents a cornerstone of India’s clean energy and circular economy vision. 
• It paves the way for a sustainable and self-reliant biofuel ecosystem by linking farmers’ livelihoods, waste management, and energy security.
• The initiative strengthens India’s journey toward a low-carbon, energy-secure future together with supportive policies and technological innovations.

Source: PIB