Lok Sabha Question No. 2874 (UNSTARRED), answered on 2017-03-20
Subject: Second Generation Ethanol Plant
Ministry: PETROLEUM AND NATURAL GAS
Asked by: BALKA SUMAN, A.T. (NANA) PATIL, PRATAPRAO GANPATRAO JADHAV, RAJU ALIAS DEVAPPA ANNA SHETTI, SHOBHA KARANDLAJE, SUNIL KUMAR SINGH, JUGAL KISHORE SHARMA

## LOK SABHA UNSTARRED QUESTION No. 2874 TO BE ANSWERED ON 20 th  MARCH, 2017

## SECOND GENERATION ETHANOL PLANT

## 2874.   SHRI SUMAN BALKA:

SHRI A.T. NANA PATIL:

SHRI PRATAPRAO JADHAV:

SHRI RAJU SHETTY:

KUMARI SHOBHA KARANDLAJE:

SHRI SUNIL KUMAR SINGH:

SHRI JUGAL KISHORE:

## isVªksfy;e vkSj izkd`frd xSl ea=h

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

- (a)  whether  the  Government  proposes  to  encourage  production  of  Second Generation (2G) ethanol from agricultural residues and methanol from coal to  reduce  dependence  on  imports  and  save  foreign  exchange  and  provide additional  sources  of  remuneration  to  farmers  across  the  country  and formulate a policy in this regard;
- (b)  if  so,  the  details  thereof  along  with  the  number  of  such  2G  ethanol  biorefineries  set  up  in  the  country,  State/UT  and  Oil  Marketing  Company (OMC)-wise;
- (c) the success achieved by the Government in implementing Ethanol blended petrol and Alkanet blended diesel/ bio-diesel in the country so far along with any proposal to increase the ratio of blending of ethanol and Alkanet at par with other countries;
- (d) the details of procurement/purchase policy of ethanol and bio-diesel along with mechanism, norms/criteria and prices fixed by the Government/OMCs including relevant BIS standards specifications in this regard; and
- (e)  whether  the  Government  proposes  to  allow  use  of  lignocellulosic  ethanol made  from  the  bagasse  of  sugarcane,  husk  of  paddy,  wheat,  cotton  and wood bamboo and if so, the details thereof along with incentives provided by  the  Government  to  the  farmers  for  promotion  of  ethanol  blending  and bio-diesel in the country and  progress made/targets achieved  by  the Government/OMCs in this regard?

## ANSWER

## isVªksfy;e vkSj izkd`frd xSl ea=ky; esa jkT; ea=h ¼Lora= izHkkj½ ¼Jh /kesZUnz iz/kku½

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (INDEPENDENT CHARGE) (SHRI DHARMENDRA PRADHAN)

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(a) & (b): The Government has allowed procurement of ethanol produced from other non-food feedstocks besides molasses, like cellulosic and ligno cellulosic materials including petrochemical route.

Oil  PSUs  have  entered  into  Memorandum  of  Understanding  (MoUs)  with State  Governments  and  Technology  Providers  for  2G  ethanol  bio-refineries. Foundation  Stone  of  one  bio-refinery  has  been  laid  by  Hindustan  Petroleum Corporation Limited at Bathinda, Punjab.

(c)  to  (e):    The  Government,  through  Oil  Marketing  Companies  (OMCs),  is implementing Ethanol Blended Petrol (EBP) Programme under which, OMCs sell  ethanol  blended  petrol  with  percentage  of  ethanol  upto  10%,  depending upon  availability  of  ethanol.  Since  December,  2014,  the  Government  has adopted  administered  price  mechanism  for  procurement  of  ethanol.    For  the present  ethanol  supply  year  2016-17,  the  Government  has  fixed  the  price  of ethanol at Rs. 39/per litre ex-sugar mill. Additionally, Excise Duty, VAT/GST and transportation charges will be paid. OMCs have been floating Tenders/Expression of Interests for procurement of ethanol.

Ethanol supplies have improved from 38 crore litres during ethanol supply year 2013-14 to 111 crore liters during 2015-16.

Also,  Ministry of Petroleum and Natural Gas had announced a Bio-diesel Purchase  Policy  in  October  2005,  which  became  effective  from  1.1.2006.  On 10.8.2015, the Government has allowed the sale of Bio-diesel (B100) by private manufacturers to bulk consumers like Railways, State Transport Corporations and  other  bulk  consumers.  Retailing  of  bio-diesel  blended  diesel  by  Oil Marketing Companies also started on 10.8.2015.

Ethanol and biodiesel are being procured as per BIS specifications IS2796:2008 and IS15607:2016 respectively.

As  indicated  above,  the  Government  has  allowed  procurement  of  ethanol produced from other non-food feedstocks besides molasses.

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