Yes, Interest subsidy of 3% is available from Ministry of Non-Conventional Energy Sources, Govt. of India, for following type of projects: -

• Ethanol production projects utilizing raw-material root other than sugar cane /molasses
• All bio-diesel production projects

Yes, JREDA has already financed some ethanol projects.

• Ethanol:
  There are three categories of raw-materials used for the production of ethanol:
  1) Sugar based - sugar cane, sugar beet, sweet sorghum etc.
  2) Starch based - all types of grains including wheat, rice, corn, barley, malt etc. and tubers such as potatoes and cassava etc.
  3) Cellulose based - agro-waste, agro-residues, bagasse, rice-husk, straw etc.
• Bio-diesel:
  1) Edible and non-edible oil and animal fats.
  2) Potential sources of bio-diesel in India can be non-edible oils obtained from plants species such as Jatropha Curcas (Rattan jot), Pongamia Pinnata (karanj ) etc.

• Ethanol (primarily for blending with petrol)
• Bio-diesel (for blending with diesel)

• Renewable in nature
• Environment friendly
• Reduced dependence on fossil fuels
• Increased agricultural economy and rural employment

Bio-fuels are renewable liquid fuels derived from biological materials by a number of chemical / biological processes.