Ethanol blending targets scaled up from 5% to 10%: Paswan

22 Dec 2015

1

The central government has scaled up blending targets under the 'Ethanol Blending Programme' (EBP) from 5 per cent to 10 per cent to promote blending of ethanol with petrol and its use as an alternative fuel, minister of consumer affairs, food and public distribution Ram Vilas Paswan informed the Lok Sabha in a written reply today.

The minister said that at present, 156 units are producing molasses based ethanol, with annual installed capacity of approximately 2.24 billion litres, while 12 more ethanol production facilities are being set up in different states.

He said 21 distilleries with sugar factories produce only alcohol, requiring upgradation for ethanol production capacities.

Sugar mills are provided soft loans of up to 40 per cent of the project cost from the Sugar Development Fund (SDF) for setting up ethanol projects, he said.

However, ethanol produced from molasses is not cheaper than motor spirit at refinery gate. In order to achieve the objectives of the National Bio-Fuel Policy and to encourage production/usage of ethanol, the central government apart from scaling up blending targets has also fixed remunerative ex-depot price of ethanol and waived excise duty on its supplies to OMCs during 2015-1, the minister pointed out.

He said the chemical industry has made representations regarding pricing of ethanol for supplies under EBP, adding that the matter is sub-judice at present.

Production of ethanol and its supplies under EBP at remunerative prices would help improve the liquidity position of sugar mills, enabling them to clear cane price dues to farmers, he added.

Latest articles

Turbulence at the top: Air India faces mounting losses amid operational and geopolitical pressures

Turbulence at the top: Air India faces mounting losses amid operational and geopolitical pressures

The 2nm race intensifies as TSMC demand surges and global rivals scale up

The 2nm race intensifies as TSMC demand surges and global rivals scale up

Tata steps up iPhone manufacturing push with fresh investment in Tata Electronics

Tata steps up iPhone manufacturing push with fresh investment in Tata Electronics

Chokepoint crisis: sanctions tighten pressure on maritime traffic in the Strait of Hormuz

Chokepoint crisis: sanctions tighten pressure on maritime traffic in the Strait of Hormuz

Uber’s robotaxi strategy shift: no confirmed $10 billion commitment to fleet ownership or “28 by 28” rollout

Uber’s robotaxi strategy shift: no confirmed $10 billion commitment to fleet ownership or “28 by 28” rollout

India’s move toward unlocking low-grade iron ore through beneficiation incentives

India’s move toward unlocking low-grade iron ore through beneficiation incentives

From chatbot to coworker: Microsoft explores autonomous agents for Copilot

From chatbot to coworker: Microsoft explores autonomous agents for Copilot

Amazon–Globalstar deal claims remain unverified amid satellite connectivity race

Amazon–Globalstar deal claims remain unverified amid satellite connectivity race

Stealth and speed: Indian Navy’s NGMV fleet to adopt waterjet propulsion technology

Stealth and speed: Indian Navy’s NGMV fleet to adopt waterjet propulsion technology