Context: 

The Ministry of Petroleum & Natural Gas has given information about the Pradhan Mantri JI-VAN scheme in the Lok Sabha.

About Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana:

• It was notified in March 2019. 
• Aims: To provide financial support to integrated bio-ethanol projects for setting up Second Generation (2G) ethanol projects by using lignocellulosic biomass and other renewable feedstocks.
• Financial Outlay: Rs. 1969.50 crore for the period 2018-19 to 2023-24.
• Financial Assistance: Rs. 150 crore per project for commercial projects and Rs. 15 crore per project for demonstration projects.
• Nodal Ministry: Ministry of Petroleum and Natural Gas

What is Biofuels:

• Biofuels are renewable fuels derived from organic sources, such as plants, agricultural and forest residues, algae, and animal waste.

Other Steps to Promote 2G Ethanol Plants:

• Imposition of additional excise duty on non-blended fuels to encourage ethanol blending.
• Off-take assurance by Oil Marketing Companies (OMCs) for 15 years to private stakeholders through Ethanol Purchase Agreements (EPA).
• Diversification of feedstock for 2G ethanol production.
• Separate price for 2G ethanol 
• A reduced GST rate of 5% on ethanol for the Ethanol Blending Programme (EBP).

News Source: PIB