Shahnawaz Hussain said the financing procedure introduced by banks required ethanol units to get approval before January 14, 2021, even though the Ethanol Production Promotion Policy was introduced in the state in March 2021

Bihar industries minister Syed Shahnawaz Hussain met Union minister Piyush Goyal on Wednesday and sought the removal of bottlenecks ethanol project proponents face in Bihar.

Hussain said the financing procedure introduced by banks required ethanol units to get approval before January 14, 2021, even though the Ethanol Production Promotion Policy was introduced in the state in March 2021. He added therefore most ethanol project proponents of Bihar are unable to avail benefit under the Centre’s interest subvention scheme nor are they able to get financing from banks. 

Hussain said that ethanol production should be promoted in Bihar because the state has raw materials in abundance. He added due to the availability of raw materials and financial incentives of the state government, investors have shown an overwhelming interest and unprecedented proposals were received.

Goyal assured him the ethanol produced in Bihar will be used for blending in diesel and jet fuel also. Regarding permitting Bihar to produce ethanol up to the availability of raw material, Goyal said the matter will be tabled at a Group of Ministers meeting.

“He (Goyal) has assured that more and more ethanol units should be set up in Bihar, for this full help will be given from the center. Bihar has also got a positive response from the Union Minister on the demand of two hundred acres of two textile parks,” Hussain tweeted after meeting Goyal.