Speed Post News Network

New Delhi : The Government has been promoting use of ethanol as a blend stock with main automotive fuel like petrol in line with the National Policy on Biofuels (NBP) -2018 under the Ethanol Blended Petrol (EBP) Programme. This policy envisages an indicative target of blending 20% ethanol in petrol by 2030.

The Government has since allowed production of ethanol from sugarcane and foodgrains based raw-materials. Department of Food & Public Distribution has informed that the cost of production of ethanol varies from distillery to distillery and depends on various factors viz. cost of raw material, conversion cost, efficiency of distillery plants etc.

Further, keeping in view the aforesaid factors, the Government has fixed the ex-mill price of ethanol from sugarcane based raw-materials and Oil Marketing Companies (OMCs) have fixed the price of ethanol from damaged and surplus rice with FCI for Ethanol Supply Year (ESY) (period from Dec. to Nov.) 2020-21.

The remunerative prices of ethanol produced from different feedstock has been fixed to encourage supply of ethanol under EBP Programme. In addition to remunerative prices, production of ethanol from various feedstock is also allowed to augment the supply of ethanol under EBP Programme. Furthermore, the Government, in order to augment production of ethanol, has notified interest subvention schemes for setting up of molasses and grain based new distilleries or expansion of existing distilleries, setting up of dual feed distilleries, installation of zero liquid discharge system, etc.

This information was given by the Union Petroleum and Natural GasMinister Dharmendra Pradhan in a written reply in the Rajya Sabha on February 3, 2021, according to a PIB release.