The Centre is planning to roll-out a new policy to revive closed sugar mills by using their land for ethanol production, Union Road Transport Minister Nitin Gadkari said on Monday.
"A lot of sugar mills are closed... I am going to frame a policy. Condition of these sugar mills is such that they are not getting finances. I want to proceed for a Cabinet note. Some 5-6 acres of land in a closed sugar mill which can be used for making of ethanol," Gadkari said.
The minister said the land of the sugar mill can be utilised for ethanol production from sugar, sugarcane juice, and molasses and policy will be framed soon
He said the ethanol economy has the potential to reach Rs 1 lakh crore from about Rs 25,000 crore and can reduce the annual Rs 7 lakh crore crude imports.
Since the government signed the agreement with several multilateral banks like KfW, a German state-owned bank, for low-cost funds green energy, we will ask them to finance closed sugar mills.
He said ethanol production through sugar could boost the economy of sugarcane-producing states including Uttar Pradesh, Karnataka, and Maharashtra.