The prime minister said the country saved Rs 50,000 crore in foreign exchange by blending ethanol with petrol in the last seven-eight years.
Modi said that the same amount of 50,000 crore has gone to farmers because of the second-generation ethanol plant of India Oil Corporation.
Modi said he would provide a permanent solution to the problem of stubble burning in farms, and that the ethanol plant will be worth Rs 900 crore.
Modi said that ethanol production has gone from 40 crore litres to 400 crore litres in the last eight years, which will be a source of income for farmers.
He said that the second-generation ethanol plant in Panipat will help reduce pollution in Haryana and Delhi. The second generation ethanol plant uses non-food biomass as a feedstock for the production of biofuels.
The project will use 2 lakh tonnes of rice straw to generate around 3 crore litres of ethanol annually. It will result in a reduction of greenhouse gases.
The Prime Minister said that the plant will help our farmers and will increase the production and use of biofuels. In a few years, 75 per cent of households will get piped gas supply, according to Modi.