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New Delhi : National Biofuel Policy-2018 envisages an indicative target of 20% blending of ethanol in petrol by 2030. The Government has proposed an action plan to increase the production of ethanol.
In order to increase the production of ethanol, the Government has taken a series of policy decisions which include: (i) notification of National Biofuel Policy-2018, (ii) differential price of ethanol from C heavy molasses, B heavy molasses, sugar, sugar syrup & sugarcane juice, (iii) amendment to Industries (Development & Regulation) Act, 1951, for free movement of denatured ethanol for Ethanol Blended Petrol (EBP) Programme, (iv) reduction in Goods & Service Tax on ethanol meant for EBP Programme from 18% to 5%, (v) increased the scope of raw material by allowing production of ethanol from damaged food grains which are unfit for human consumption, fruit and vegetable wastes, etc., (vi) interest subvention scheme for financial assistance for sugar industry to increase distillation capacity, and (vii) production of Second Generation Bio-ethanol using lignocellulosic biomass and other renewable feedstock.
This information was given by the Union Petroleum & Natural Gas Minister Dharmendra Pradhan in the Lok Sabha on February 10, 2020, in a written reply.
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