The government on Tuesday extended the loan disbursement TAUT for ethanol projects until September 30, 2022, a move that will help boost the production of renewable fuel, made from corn and other crops.
According to official sources, this measure will also help achieve the goal of reaching 20% ethanol blending by 2025.
The first loan disbursement TAUT was March-April 2022.
The Department of Consumer Affairs said in a statement that the disbursement TAUT for ethanol project loans has been extended to September 30, 2022 for all schemes notified during the 2018-2021 period.
This decision is intended to help entities carry out their projects and take advantage of the benefits of the interest subsidy.
The Center has notified different interest subsidy schemes for sugar mills and distilleries during the period 2018-2021, to improve ethanol production and supply under the Ethanol Blended with Petrol (EBP) program , especially during the surplus season. It will also improve the liquidity position of sugar mills, allowing them to clear farmers’ cane price arrears.
The government also provides financial assistance in the form of an interest subsidy of 6% per annum or 50% of the interest rate charged by banks, whichever is lower, on loans to be granted by banks for five years, including a one-year moratorium.
“However, due to the unavoidable and unfortunate situation caused by COVID-19, the project developers were unable to meet the loan disbursement TAUT with the banks and were unable to complete their projects in a timely manner. Therefore, it is necessary to extend the loan disbursement TAUT under the interest subsidy programs announced earlier in the period 2018-2021,” the statement said.
Extracted in full from: Government extends loan disbursement TAUT for ethanol projects – The AU Times