Rajasthan PLI for Ethanol
By Department of Industries and Commerce, Government of Rajasthan
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
A production-linked incentive of ₹1.50 per litre for ethanol manufactured and supplied to OMCs, applicable up to 100% of plant & machinery investment for a period of up to 7 years.
About this subsidy
The Production Linked Incentive (PLI) for Ethanol is a key initiative under the Rajasthan Investment Promotion Scheme (RIPS) 2024, designed to bolster the state's manufacturing capabilities and promote self-reliance in the energy sector. This scheme specifically targets ethanol manufacturers who supply to Oil Marketing Companies (OMCs), encouraging increased domestic production and integration of agricultural feedstock.
By offering a direct financial incentive tied to production, the Government of Rajasthan aims to reduce dependency on fossil fuels, support local agricultural economies through feedstock procurement, and attract further investment into the ethanol manufacturing sector within the state. The incentive structure is designed to offset initial investment costs and operational expenses, thereby making ethanol production more economically viable and competitive.
This PLI scheme reflects Rajasthan's commitment to sustainable industrial growth and its contribution to national goals of achieving a 20% ethanol blending target by 2025. It serves as a strategic boost for businesses looking to establish or expand their ethanol production units, ensuring a steady supply for OMCs and fostering a robust ecosystem for biofuel production.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Industries & Commerce Department is a Government of Rajasthan department based in Jaipur. It runs the Vishwakarma Yuva Udyami Protsahan Yojana, a continuous subsidy for enterprises owned by young entrepreneurs, and it sets out further MSME subsidies and incentives in the…
Learn moreBenefits & Funding
What You Get
Ethanol manufacturers can receive a Production Linked Incentive of ₹1.50 per litre of ethanol manufactured and supplied to Oil Marketing Companies (OMCs). This incentive is designed to support significant investment, with applicability capped at a maximum of 100% of the investment in plant & machinery. The benefit is available for an extended period of up to 7 years from the date of commercial production, providing long-term financial stability and encouraging sustained production growth. This direct financial support helps reduce operational costs and accelerates the return on capital for new or expanding ethanol units.
- Disbursement
- Reimbursement
- Duration
- 85 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the Production Linked Incentive (PLI) for Ethanol in Rajasthan?
The PLI for Ethanol is an incentive scheme offered by the Government of Rajasthan under the RIPS 2024 policy. It provides a financial benefit to ethanol manufacturers based on their production and supply to Oil Marketing Companies (OMCs).
Who is eligible for this incentive?
Ethanol manufacturers who are supplying their manufactured ethanol to Oil Marketing Companies (OMCs) are eligible to claim this incentive.
What is the incentive amount per litre?
Eligible manufacturers will receive an incentive of ₹1.50 per litre of ethanol manufactured and supplied to OMCs.
Is there a maximum limit to the incentive?
Yes, the total incentive received is capped at a maximum of 100% of the investment made in plant and machinery by the ethanol manufacturer.
For how long can a manufacturer claim this incentive?
The incentive is applicable for a period of up to 7 years, starting from the date of commercial production of ethanol by the manufacturer.
How do I apply for or claim this incentive?
Manufacturers seeking to claim this incentive typically need to register under the Rajasthan Investment Promotion Scheme (RIPS) 2024 and apply to the nodal agency or relevant department (e.g., Industries Department) of the Government of Rajasthan. This usually involves submitting documentation for commercial production, investment in plant & machinery, and regular reports on ethanol supply to OMCs for verification and disbursement.
Sources
Data on this page is compiled from official program and provider references.
