Ethanol-blending in Petrol in India has reached more than 7.2 per cent for the First Time. It has reached 7.2 per cent in the first four months of the ethanol supply year 2020-21 (December 2020 – November 2021).
- Before this, the best-ever ethanol blending in petrol achieved at all-India level was around 5.2 per cent.
- India has set a target of 10 %(10% of ethanol mixed with 90% of petrol) blending by 2022 & 20 % blending by 2025.
- The government is promoting the use of ethanol as blendstock with Petrol in line with the National Policy on Biofuels (NPB) – 2018 under the Ethanol Blended Petrol (EBP) Programme.
States nearing 2022 Target
- If Oil-Marketing Companies (OMCs) lift the ethanol that they had contracted for, then the all-India average blending could reach 8% by November 2021.
- In states such as Goa, Karnataka, Maharashtra, Gujarat, Uttar Pradesh, Haryana, Punjab, Delhi, Uttarakhand, Himachal Pradesh & UT of Daman and Diu, 9.5-10 percent ethanol is being blended with petrol.
- According to data, in order to achieve the 20% ethanol blending target, India needs 1000 Crore Litres Ethanol Capacity.
- Sources of ethanol – C-heavy Molasses, B-heavy Molasses, Sugarcane Juice/sugar/sugar-syrup, Damaged Food Grain/Maize, Surplus rice with Food Corporation of India (FCI).
Ethanol Blended Petrol (EBP) programme
It was launched in January 2003 by the Ministry of Petroleum & Natural Gas (MoP&NG).
i.It aims to achieve a blending of Ethanol with Petrol with an aim of reducing pollution, increasing value addition in the sugar industry & reducing India’s dependence on imported Crude Oil.
ii.Under the programme, the government has undertaken several initiatives. They are
- Reducing GST on ethanol meant for the EBP programme from 18% to 5%.
- Opening of alternate routes for ethanol production.
- Interest Subvention Scheme for enhancement and augmentation of the ethanol production capacity by Department of Food and Public Distribution (DFPD) (under Ministry of Consumer Affairs, Food and Public Distribution).
Recent Related News:
i.On December 30, 2020, the Union Cabinet approved a modified scheme to
enhance ethanol distillation capacity in the country for producing 1st Generation, 1G ethanol from feedstocks such as cereals like rice, wheat, barley, corn and sorghum and sugarcane, sugar beet etc.
About Ministry of Petroleum & Natural Gas (MoPNG)
Union Minister – Dharmendra Pradhan (Member of Parliament – Rajya Sabha, Constituency – Madhya Pradesh)
