Lok Sabha Question No. 794 (UNSTARRED), answered on 2016-11-21
Subject: Ethanol Blending Programme
Ministry: PETROLEUM AND NATURAL GAS
Asked by: KANWAR SINGH TANWAR, RAJU ALIAS DEVAPPA ANNA SHETTI, PONGULETI SRINIVASA REDDY, JUGAL KISHORE SHARMA

## LOK SABHA UNSTARRED QUESTION No. 794 TO BE ANSWERED ON 21 ST  NOVEMBER, 2016

## ETHANOL BLENDING PROGRAMME

## 794.   SHRI KANWAR SINGH TANWAR:

SHRI RAJU SHETTY:

SHRI PONGULETI SRINIVASA REDDY:

SHRI JUGAL KISHORE:

## isVªksfy;e vkSj izkd`frd xSl ea=h

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

- (a)    the mechanism and  norms/criteria laid down by the Government to implement ethanol blending programme in the country;
- (b) whether  the  Government  has  reduced  the  prices  of  ethanol  and  approved  a  new mechanism  to  determine  the  prices  of  ethanol  to  be  procured  by  Oil  Marketing Companies (OMCs);
- (c) if  so,  the  details  thereof  along  with  the  progress  made/target  achieved  by  each  Oil Marketing  Company,  company-wise  to  adhere  to  the  norms  prescribed  for  the purpose;
- (d) whether  the  Government  proposes  to  increase  the  ratio  of  blending  of  ethanol  in petrol in the near future and if so, the details thereof along with any consultations held with  various  stakeholders  in  this  regard  and  the  follow-up  action  taken  by  the Government thereon and time by which the proposed target is likely to be achieved; and
- (e) the details of the savings made so far from blending of ethanol and steps taken by the Government to  promote  and  encourage  use  of  ethanol  blending  in  petrol  and  biodiesel in the country?

## 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):  The  Government,  through  Oil  Marketing  Companies  (OMCs),  is  implementing  the Ethanol Blended Petrol (EBP) Programme under which, OMCs sell ethanol blended petrol with percentage of ethanol upto 10%.  Also, the Government has allowed procurement of ethanol  produced  from  other  non-food  feedstocks,  like  cellulosic  and  ligno  cellulosic materials including petrochemical route.
- (b) & (c) :  The Government has fixed the price of ethanol for the ethanol supply year 201617 at Rs.39/ per litre.  Additionally,  Excise  Duty,  VAT/GST  and  transportation  charges (as decided by OMCs) will be paid by OMCs.

OMCs have procured 103 crore litres of ethanol during the ethanol supply year 201516 (till 7.11.2016).

(d) : In 2015, the Government has asked OMCs to target 10 % blending of ethanol in as many States as possible.   A Steering Committee and a Working Group on biofuels have been  constituted  in  Ministry  of  Petroleum  and  Natural  Gas.    They  are  holding  regular consultations with concerned stakeholders. (e) : The  potential  foreign  exchange  savings  due  to  blending  of  ethanol  for  the  ethanol supply year 2015-16 is approximately USD 353 Million. Also, the Government had announced a Bio-diesel Purchase Policy in October 2005. In private manufacturers to bulk consumers. Moreover, retailing of bio-diesel blended diesel by Public

August 2015, the Government has allowed sale of Bio-diesel (B100) by Sector OMCs has started on 10 th August, 2015

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