Lok Sabha Question No. 2458 (UNSTARRED), answered on 2017-07-31
Subject: Purchase of Ethanol
Ministry: PETROLEUM AND NATURAL GAS
Asked by: LALLU SINGH, KALIKESH NARAYAN SINGH DEO

## LOK SABHA UNSTARRED QUESTION No. 2458 TO BE ANSWERED ON 31 st  JULY, 2017

## PURCHASE OF ETHANOL

## 2458. SHRI LALLU SINGH: SHRI KALIKESH N. SINGH DEO:

## isVªksfy;e vkSj izkd`frd xSl ea=h

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

- (a)  whether additional amount is required to be spent by the public sector oil companies for purchasing ethanol till November, 2017 due to implementation of Goods and Services Tax in the country and if so, the details thereof along with the additional amount required for this purpose, PSU-wise;
- (b)  the  details  of  the  percentage  of    tax  levied  by  each  State  Government  under  the  new taxation regime in the country;
- (c)  whether  the  Government  proposes  to  unveil  a  new  policy  on  first/second  generation ethanol and  if  so,  the  details  thereof  along  with  funds/investment  made  by  the Government for production of second generation ethanol to achieve desired results in this regard;
- (d)  the  details  of  second  generation  ethanol  plant  set  up  in  the  country  so  far  along  with ethanol blending rate in the country during the last year and the current year, State/UTwise; and
- (e)  whether any technical economic feasibility studies have been carried out for production of secod generation ethanol and if so, the details and the outcome thereof?

## 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)

**********

- (a) & (b):  With effect from 1 st July, 2017, the applicable GST rate on ethanol is 18 per cent.

Prior to this, excise duty on ethanol was 12.5 per cent and State VAT ranged from Nil to 8 per cent in different States.  The per litre impact due to change in taxes varies from State to State as per earlier VAT rates.

(c) & (d): A National Policy on Bio-fuels has been notified by the Government in December 2009, which has laid down detailed guidelines about introduction of bio-fuels.  The Policy aims  to  bring  about  accelerated  development  and  promotion  of  the  cultivation,  production and use of biofuels to increasingly substitute petrol and diesel for transport.

On  Second  Generation  (2G)  ethanol,  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 decided to establish twelve 2G Ethanol bio-refineries in 11 States of the country and entered into Memorandum of Understanding (MoUs) with State Governments  and  Technology  Providers  for  setting  up  five  2G  ethanol  bio-refineries. Foundation  Stone  of  one  bio-refinery  has  been  laid  by  Hindustan  Petroleum  Corporation Limited on 25.12.2016 at Bathinda, Punjab.

During the last ethanol supply year 2015-16, OMCs achieved blend percentage of 3.5 per cent.  For the current ethanol supply year 2016-17, it is 2.44 per cent as on 17.7.2017. State/UT wise blend percentage is given in Annexure.

(e)  Engineers India Limited has studied some of the available 2G ethanol technologies and has prepared feasibility reports for setting up of 2G ethanol bio-refineries.

*****

## Annexure

Annexure referred to in reply to part (d) of Lok Sabha Unstarred Question No. 2458 asked by Shri Lallu Singh and Shri Kalikesh N. Singh Deo to be answered on 31 st July, 2017 regarding  'Purchase of Ethanol'.

Details  of  ethanol  blending  rate  in  the  country  during  the  last  ethanol  supply  year  and  the current ethanol supply year, State/UT-wise.

| States / UTs     | Blending %age                | Blending %age                  |
|------------------|------------------------------|--------------------------------|
| States / UTs     | Ethanol Supply Year 2015- 16 | Ethanol supply year 2016- 17 * |
| Andhra Pradesh   | 5.0%                         | 2.5%                           |
| Bihar            | 4.8%                         | 7.9%                           |
| Chhattisgarh     | 0.2%                         | 0.02%                          |
| Delhi            | 6.1%                         | 5.4%                           |
| Goa              | 5.1%                         | 0.2%                           |
| Gujarat          | 1.4%                         | 1.3%                           |
| Haryana          | 7.5%                         | 3.3%                           |
| Himachal Pradesh | 0.0%                         | 0.3%                           |
| Jharkhand        | 0.2%                         | 0.2%                           |
| Karnataka        | 4.1%                         | 3.2%                           |
| Kerala           | 0.0%                         | 0.01%                          |
| Madhya Pradesh   | 0.3%                         | 0.05%                          |
| Maharashtra      | 7.1%                         | 2.7%                           |
| Odisha           | 0.1%                         | 0.02%                          |
| Punjab           | 3.4%                         | 4.7%                           |
| Rajasthan        | 0.0%                         | 0.0%                           |
| Tamil Nadu       | 0.1%                         | 0.01%                          |
| Telangana        | 6.8%                         | 0.7%                           |
| Uttar Pradesh    | 8.0%                         | 8.4%                           |
| Uttarakhand      | 3.6%                         | 4.7%                           |
| West Bengal      | 1.4%                         | 1.3%                           |
| Grand Total      | 3.5%                         | 2.4%                           |

*  Upto June, 2017