New Delhi, Nov 10 (IANS) The Union Environment Ministry has given its clearance to Indian Oil Corporation for setting up a 2G ethanol plant in Panipat, it was announced on Sunday.

Environment Minister Prakash Javadekar tweeted: "Happy to inform that Environment Clearance is given to IOCL to set up new 2G Ethanol plant in #Panipat".

"The project not only promotes use of env. friendly fuel but also aids in fulfilment of Govt.'s goal of doubling farmers' income," he said in another tweet.

The ethanol project at the Panipat refinery is being set up a cost of Rs 909 crore. The benefit of the plant is that blending of ethanol with motor spirit leads to reduction of import of crude oil with corresponding savings in foreign exchange.

This project envisages production of 100 kl ethanol a day from multi-feedstock lignocelluloses using indigenous technology.

--IANS san/vd