Lok Sabha Question No. 2542 (UNSTARRED), answered on 2018-03-12
Subject: Methanol Blending with Petrol
Ministry: PETROLEUM AND NATURAL GAS
Asked by: C. MAHENDRAN, OM BIRLA, P. KUMAR

## LOK SABHA UNSTARRED QUESTION No. 2542

## TO BE ANSWERED ON 12 th  MARCH, 2018

## METHANOL BLENDING WITH PETROL

## 2542.  SHRI C. MAHENDRAN:

SHRI OM BIRLA:

SHRI P. KUMAR:

## isVªksfy;e vkSj izkd`frd xSl ea=h

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a)  whether  the  Government  is  planning  to  blend  methanol  with  petrol  and  encourage production  and  usage  of  alternative  fuels  to  reduce  import  of  crude  oil,  if  so,  the  details thereof along with its likely impacts on petrol prices and the eco-system;
- (b)    whether  the  Government  has  taken  steps  to  encourage  the  production  of  ethanol  as alternative fuel for hybrid vehicles during the last three years and the current year and if so, the details thereof; and
- (c)  whether the Government proposes to encourage the establishment of alternative fuel/biofuel  stations  across  the  country  and  if  so,  the  details  thereof  along  with  funds  allocated  / utilised for the purpose?

## ANSWER

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

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

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- (a) :  To take forward the initiative of methanol economy in India, the Government has taken the following steps :
- (i)      NITI  Aayog  has  constituted  'Apex  Committee  on  Methanol  Economy'  and  five  task forces to study various aspects of Methanol production and usage of its blend in gasoline in transport sector.
- (ii)   BIS has set up a committee to finalise the methanol gasoline blend (M15) specifications.
- (iii)    Automotive Research Association of India (ARAI) has started studies to establish the performance  of  Methanol  Blend  (15  per  cent)  in  Gasoline  and  its  efficacy  to  reduce pollution.

Though methanol has more efficient and cleaner burning, it has nearly half the volumetric energy content of gasoline, indicating that it would require double quantity and price for the same energy output. (b):      In  order  to  improve  the  availability  of  ethanol,  the  Government  introduced  the administered  price  mechanism  in  December,  2014.    In  November,  2017,  the  Government further  revised  the  ex-mill  price  of  ethanol  for  the  ethanol  supply  year  2017-18  at  Rs. 40.85/per litre. Additionally, GST and transportation charges are being paid by OMCs. In  December,  2014,  the  Government  allowed  Second  Generation  (2G)  route  for procurement  of  ethanol.  Oil  PSUs  have  entered  into  Memorandums  of  Understanding (MoUs) with State Governments and Technology Providers for setting up five 2G ethanol bio-refineries.  On 25.12.2016, foundation stone of the first 2G ethanol bio-refinery to be set up by Hindustan Petroleum Corporation Limited in Bathinda, Punjab, has been laid. Ethanol supply has improved from 38 crore litres during ethanol supply year 2013-14 to 111 crore litres in 2015-16.  Though  the supply reduced to 66.5 crore litres in 2016-17 due to lower sugarcane, molasses availability because of drought in Maharashtra and Karnataka, the allocated quantity of ethanol in ethanol supply year 2017-18 has increased to 139.5 crore litre. (c)    Oil  Marketing  Companies  (OMCs)  are  selling  ethanol  blended  Petrol  and  Bio-diesel blended Diesel through their existing retail outlets.

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