GR on dual-feed policy for ethanol production

Gazette Reference: GR No. VISAYES 0225/प्र.क्र. 30/राउशु-2, dated 23rd July 2025

Type of Change: New Policy Notification

What Changed: The Maharashtra Government has introduced a new Dual-Feed Policy for anhydrous alcohol (ethanol) production. Previously, molasses-based distilleries (Form-I licensees) could produce ethanol only from sugarcane-based feedstocks (sugar/sugarcane juice/B-heavy molasses/C-heavy molasses). This notification now permits these same distilleries to operate using both molasses-based AND grain-based feedstocks under a dual-feed system, provided they obtain prior government approval and meet specified technical requirements. This aligns with the Central Government's Ethanol Blending Programme directive (dated 21.12.2023) aimed at increasing domestic ethanol production capacity. The policy explicitly prohibits use of grain-based ethanol for potable liquor—it may only be used as fuel-grade ethanol.

Key Details:

Eligibility & Scope:

• Applies to existing molasses-based "Form-I" (Manufacturing) license holders under BPA
• Permits dual operation: molasses feedstock (sugar/juice/B-heavy/C-heavy molasses) + grain feedstock
• Grain-based ethanol restricted to anhydrous (fuel-grade) use only—NOT for potable alcohol

Prior Approvals Required (Para 2):

1. Revised Environmental Clearance from Central Ministry of Environment
2. Revised Consent to Operate from Maharashtra Pollution Control Board
3. PESO approval for layout modifications
4. Details of existing plant capacity, storage tanks with approved layouts
5. Proposed layout if capacity expansion planned

Mandatory Technical Requirements (Para 3):

1. Adequate grain storage facilities
2. Separate feed preparation and fermentation systems for grain
3. Independent receiver tanks and storage tanks for each feedstock type (must be recorded in distillery records)
4. Effluent treatment system for Distillers Dried Grains with Solubles (DDGS) as per MPCB norms

Operational Procedures (Para 4):

• When switching feedstock: 15 days written notice to Superintendent and Supervisory Officer (State Excise) required
• At any time, only ONE feedstock type may be processed in a production line
• Must follow procedures specified in Central Government order dated 21.12.2023

Multi-Line Distillery Requirements (Para 5): If distillery has multiple production lines:

1. Separate storage tanks for each feedstock, clearly marked
2. Different feedstocks may run on different lines simultaneously
3. BUT each line uses only one feedstock at a time; connections for other feedstocks must be closed
4. Independent weighing systems for feedstock, fermentation, distillation, dehydration per line
5. Separate ethanol receivers per line with no cross-connectivity
6. Minimum 30 days continuous operation on one feedstock before switching
7. 15 days advance notice for feedstock changeover

Binding Conditions (Para 6):

1. Grain-based ethanol for fuel-grade (anhydrous) use only
2. MPCB compliance and environmental protection is distillery's responsibility
3. All conditions from referenced GRs remain applicable
4. Future Central/State directives will be binding

Authority Reference:

• Previous GRs: 14.10.2020, 20.05.2021, 31.01.2023
• Central Government Order: Ministry of Consumer Affairs, Food & Public Distribution, dated 21.12.2023
• Proposal from Commissioner of State Excise, dated 09.06.2025

Effective Date: From date of publication (23rd July 2025)

Digital Reference Code: 202507231819263829