Subsequent to opening up of alternate route i.e. Second Generation (2G) route for ethanol production, Public Sector Oil Marketing Companies under the administrative control of Ministry of Petroleum and Natural Gas are in the process of setting up 12, 2G bio-refineries with an investment of Rs.14,000 crore.

In order to encourage setting up of second generation bio-fuels plants, Government has launched as scheme namely i.e. "Pradhan Mantri JI-VAN (JaivIndhan- VatavaranAnukoolfasalawasheshNivaran) Yojana" for providing financial support to integrated bio-ethanol projects, using lignocellulosic biomass and other renewable feedstock. In this scheme, financial support to twelve Integrated Bio ethanol Projects using lignocellulosic biomass & other renewable feedstock with total financial outlay of Rs 1969.50 crore for the period 2018-19 to 2023-24 will be provided along with support to ten demo projects for 2G technology.