Current ethanol production capacity is 1,364 crore litres; sufficient to meet blending targets: Centre tells Rajya Sabha
Dec 04, 2023
New Delhi [India], December 4 The current ethanol production capacity in India is 1,364 crore litres and is sufficient to meet the fuel blending targets, the Centre informed Rajya Sabha on Monday.
In a written reply in the Rajya Sabha, Rameswar Teli, minister of state in the Ministry of Petroleum and Natural Gas, apprised that Uttar Pradesh, Maharashtra and Karnataka are ethanol surplus states.
The National Policy of Biofuels-2018, notified in June, 2018, provided indicative targets of 20 percent ethanol blending in petrol and 5 percent biodiesel blending in diesel by 2030.
"Encouraged by the past 7 years' performance under the Ethanol Blending Programme, the government decided to advance the targets of 20 percent ethanol blending in petrol from 2030 to Ethanol Supply Year (ESY) 2025-26," the minister informed the Rajya Sabha.
The Roadmap for Ethanol Blending in India 2020-25, prepared by an inter-ministerial committee, estimated an ethanol requirement of 1,016 crore litres to achieve 20 per cent blending targets in ESY 2025-26, the minister mentioned.
"The current ethanol production capacity of 1364 crore litre is spread across most of the states of the country including the ethanol surplus states of Uttar Pradesh, Maharastra, and Karnataka. This capacity is sufficient to produce the ethanol required to meet the blending targets," Rameswar Teli informed.
In line with the roadmap, oil marketing companies have achieved 10 per cent ethanol blending during 2021-22 and 12 per cent during 2022-23, the minister's reply mentioned.
The minister also informed about the measures taken by the government to meet the ethanol blending targets which include the expansion of feedstock for the production of ethanol; the administration of a price mechanism for procurement of ethanol under the Ethanol Blended Petrol (EBP) Programme;
The government also lowered the GST rate to 5 per cent on ethanol for the ethanol blending programme; and amended in Industries (Development and Regulation) Act for the free movement of ethanol across states for blending, the minister said, adding that the government introduced an interest subvention scheme for enhancement and augmentation of ethanol production capacity in the country and ensured regular floating of Expression of Interest (EoI) by Public Sector Oil Marketing Companies (OMCs) for procurement of ethanol.
