NEW DELHI: The Union Cabinet on Wednesday approved an increase in rates of ethanol meant to be blended with petrol and advanced the target for selling 20% ethanol blended petrol (EBP) by about five years from the earlier deadline of 2030 after India achieved the 10% blending target in May, petroleum and natural gas minister Hardeep Singh Puri said.
The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi approved higher ethanol prices derived from different sugarcane-based raw materials under the EBP Programme for the forthcoming sugar season 2022-23, according to an official statement.
“The price of ethanol from C heavy molasses route be increased from Rs. 46.66 per litre to Rs.49.41 per litre,” it said. The price of ethanol from the B heavy molasses route has been increased from ₹59.08 per litre to ₹60.73 per litre.
The price of ethanol from the sugarcane juice/sugar/sugar syrup route has been increased from ₹63.45 per litre to ₹65.61 per litre. Additionally, GST and transportation charges will also be payable.
The statement said all distilleries will be able to benefit from the scheme and a large number of them are expected to supply ethanol for the EBP programme. “Remunerative price to ethanol suppliers will help in early payment to cane farmers, in the process contributing to minimize the difficulty of sugarcane farmers.”
The government has been implementing the EBP programme wherein oil marketing companies sell petrol blended with ethanol up to 10%. The programme was extended to the whole of India except the Union Territories of Andaman Nicobar Islands and Lakshadweep from April 1, 2019, to promote the use of alternative and environment-friendly fuels, the statement said. “This intervention also seeks to reduce import dependence for energy requirements and boost the agriculture sector.”
The government has been notifying administered price of ethanol since 2014. For the first time in 2018, the differential price of ethanol based on feedstock utilised for ethanol production was announced.
These decisions have significantly improved the supply of ethanol. Consequently, ethanol procurement by public sector companies has increased from 38 crore litre in ethanol supply year 2013-14 (ESY – currently defined as ethanol supply period from December 1 of a year to November 30 of the following year) to contracts of over 452 crore litre in ongoing ESY 2021-22. The target of achieving an average of 10% blending was achieved in June , much ahead of the target date of November.
Puri said the government has advanced the target of 20% ethanol blending in petrol from earlier 2030 to ESY 2025-26 and a “roadmap for ethanol blending in India 2020-25” has been put in the public domain.
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