Lok Sabha Question No. 3124 (UNSTARRED), answered on 2018-08-06
Subject: Ethanol/Bio-diesel Production
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SHARAD TRIPATHI, DUSHYANT CHAUTALA, BHARATENDRA SINGH, BANSHILAL MAHTO

state:

- a) the  retail  price  at  which  the  ethanol  blended  petrol  is  sold  to  the consumers  along  with  criteria  adopted/fixed  by  the  Government  to ascertain/fix the selling price of gas in the country;
- b) whether  any  dispute  has  arisen  over  fixing  of  production  price  of  the ethanol  and  if  so,  the  details  thereof  along  with  the  reaction  of  the
3. Government thereto and current status of the said issue;
- c) the  details  of  the  Government  agency  or  authority  responsible  for  the implementation  of  the  ethanol  blended  fuel  along  with  the  impact  of Section  3  of  the  industries  (Development  and  Regulation)  Amendment Act, 2016 on the taxation of ethanol in various States;
- d) whether the Government has formulated National Policy on Biofuels with the aim to reduce carbon emission by 40% and to increase production of biofuels  in  the  country  and  if  so,  the  details  thereof  and  any  plan  to provide financial incentives for increasing production of biofuels;
- e) the details of target set for production of bio-diesel in the country during the last three years and the current year and extent of success achieved in this regard so far; and
- f) whether the Government of Chhattisgarh has prepared a scheme for biodiesel production with the motto of 'Diesel nahin ab khaadi se - Diesel Banega Baadi se' a few year ago and if so, the details thereof along with the extent of success achieved therein so far and the other efforts being made by the Government in this regard?

## LOK SABHA UNSTARRED QUESTION No. 3124

## TO BE ANSWERED ON 6 th  AUGUST, 2018

## ETHANOL/BIO-DIESEL PRODUCTION

## 3124. SHRI SHARAD TRIPATHI:

SHRI DUSHYANT CHAUTALA:

KUNWAR BHARATENDRA:

DR. BANSHILAL MAHATO:

## isVªksfy;e vkSj izkd`frd xSl ea=h

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to

## ANSWER

## isVªksfy;e vkSj izkd`frd xSl ea=h ¼Jh /kesZUnz iz/kku½

## MINISTER OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

******

(a) The retail selling price of ethanol blended petrol in Delhi on 02.08.2018 is ₹ 76.43 per litre. Government of India has notified 'New Domestic Natural Gas  Pricing  Guidelines  2014'  on  25.10.2014.  This  pricing  mechanism  is formula  based  and  has  been  worked  out  considering  the  volumes  and  prices prevailing at major international markets.  The prices are revised after every six months in accordance with said guidelines.

(b) Government  has  fixed  the  price  of  ethanol  derived  from  C-heavy molasses at ₹ 43.46 per litre and B-heavy molasses /sugarcane juice at ₹ 47.13 per litre for ethanol supply year 2018-19, based on actual Fair and Remunerative Price (FRP) of sugar for sugar season 2018-19 declared by the Government.

(c) Ministry of Petroleum and Natural Gas, through Oil Marketing Companies (OMCs), is implementing Ethanol Blended Petrol (EBP) Programme  under  which,  OMCs  sell  ethanol  blended  petrol  with  percentage 10%  ethanol  in  petrol. Government  of  India  has  amended  the  Industries (Development and Regulation) Act, 1951, on 14.5.2016. As per the amendment, the State Governments can legislate, control and / or levy taxes and duties on liquor  meant  for  human  consumption;  and  denatured  ethanol,  which  is  not meant  for  human  consumption,  will  be  controlled  /  legislated  by  the  Central Government.

(d) Government  has  notified  the  National  Policy  on  Biofuels-2018  on 8.6.2018.  The policy categorizes biofuels as 'Basic Biofuels', i.e., such as bio ethanol and biodiesel and 'Advanced Biofuels' such as Second Generation (2G) ethanol,  bio-CNG,  Third  Generation  Biofuels,  etc.  to  enable  extension  of appropriate financial and fiscal incentives under each category.

(e) Procurement  of  Biodiesel  by  OMCs  for  blending  with  Diesel  has increased from 1.19 crore litres in 2015-16 to 4.36 crore litres in 2017-18.

(f) As per Chhattisgarh Biofuel Development Authority (CBDA), large scale plantation of non-edible tree borne oilseed crops (e.g. Jatropha) has been taken up  during  the  period  2005-06  till  2008-09  by  Govt.  of  Chhattisgarh  with  the slogan  ''Diesel  nahin  ab  khadi  se  -  Diesel  Banega  Badi  se'.    During  the  said period,  an  estimated  2774.076  lakhs  of  Jatropha  plants  were  planted  in  about 1,10,963  hectare.  Till  date,  CBDA  has  produced  and  marketed  more  than 4,27,324 kg. of semi-finished/finished Biofuel from its demonstration Biofuel Plant at Raipur.