Government Expands JI-VAN Yojana to Scale India’s Advanced Biofuel Capacity

India has intensified its push for advanced biofuels, expanding the Pradhan Mantri JI-VAN Yojana to support new-generation biofuel projects, boost farmer income, curb residue burning and strengthen the country’s ethanol and clean-energy ecosystem. 

Scheme Expansion and Biofuel Projects 

The JI-VAN Yojana, originally launched in 2019 and amended in 2024, aims to accelerate the establishment of advanced biofuel plants using lignocellulosic biomass and other renewable feedstocks.  

The scheme focuses on generating value from agricultural residues, reducing environmental pollution, improving rural employment and decreasing the nation’s reliance on crude oil. 

Under the programme, a major 2G paddy straw–based bio-ethanol plant has been set up by Indian Oil Corporation Ltd (IOCL) in Panipat, Haryana. In addition, a 2G bamboo-based biorefinery has been commissioned at Numaligarh, Assam, by Numaligarh Refinery Ltd through Assam Bio-Ethanol Private Limited.  

IOCL has also developed a 3G ethanol facility at Panipat using refinery off-gas. These projects are part of India’s strategy to build a stable advanced biofuels ecosystem and promote commercial viability of next-generation technologies. 

Feedstock Diversification and Production Trends 

India’s updated National Policy on Biofuels encourages the use of a broad range of feedstock, including damaged food grains, broken rice, maize, molasses, corn cobs, paddy straw, cotton stalk and other agricultural residues.  

The utilisation of these materials varies each year based on availability, economic feasibility and demand. 

Sugar production in 2024-25 stood at 340 LMT, with an additional 34 LMT diverted for ethanol, against domestic demand of 281 LMT. Similarly, maize output rose nearly 30%, increasing from 337.30 LMT in 2021-22 to 443 LMT in 2024-25. These developments support ethanol blending targets while enabling timely payments to farmers. 

The Ethanol Blended Petrol (EBP) Programme has delivered over ₹1,36,300 crore to farmers since ESY 2014-15, saved more than ₹1,55,000 crore in foreign exchange, reduced roughly 790 lakh metric tonnes of CO₂, and substituted over 260 lakh metric tonnes of crude oil. 

Sustainable Practices and Waste-to-Energy Efforts 

The Government continues to encourage a shift from water-intensive crops to sustainable alternatives like maize, supported by initiatives such as the Roadmap for Ethanol Blending in India 2020-25.  

Technological upgrades have also enabled distilleries to operate as zero-liquid-discharge units, lowering environmental impact. 

Alongside biofuel production, the Waste-to-Energy Programme is promoting CBG/Bio-CNG projects using agricultural, industrial and urban waste. Financial assistance is being provided for biomass aggregation machinery to prevent burning of crop residue and enable reliable feedstock supply chains. 

Read More: Pradhan Mantri Ujjwala Yojana: Govt Approved Additional 25 Lakh Additional LPG Connections! 

Conclusion 

The expanded JI-VAN Yojana signals a major step in India’s biofuel journey, advancing next-generation ethanol, supporting farmers, reducing waste burning and reinforcing the transition towards a cleaner, more resilient energy landscape. 

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