NEW DELHI: The Ministry of Environment has granted clearance to the Indian Oil Corporation (IOC) to set up a 766-crore 2G ethanol plant in Haryana's Panipat district.

Making the announcement through a tweet on Sunday, Union Environment Minister Prakash Javadekar said, "Happy to inform that Environment Clearance is given to IOC to set up new 2G ethanol plant in Panipat."

He also said that the project would help in achieving the goal of doubling farmers' income. "This project not only promotes use of environment friendly fuel but also aids in fulfilment of government's goal of doubling farmers' income," he tweeted.

The IOCL had submitted a proposal seeking environment clearance for its proposed 100 KLPD Ligno-Cellulosic 2G ethanol plant at Baholi in Panipat district of Haryana.

The estimated investment in setting up the plant is Rs 766 crore.

Ethanol produced will be used for blending in transportation fuel, an official source said.

Recently, the central government had notified that no environmental clearance would be required by sugar mills to produce additional ethanol from sugarcane juice.