Lok Sabha Question No. 4722 (UNSTARRED), answered on 2019-07-22
Subject: Ethanol Production
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Thirumaa Valavan Thol

## LOK SABHA UNSTARRED QUESTION No. 4722

## TO BE ANSWERED ON 22 nd  JULY, 2019

## Ethanol Production

## 4722. SHRI THOL THIRUMAAVALAVAN:

## isVªksfy;e vkSj izkd`frd xSl ea=h

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

- (a) whether  India  has  enough  local  production  of  Ethanol  to  meet  the  E10 blending  targets  by  2022  and  if  so,  the  details  of  supply  of  Ethanol  to industrial use and other purposes;
- (b) whether  there  is  any  plan  to  amend  the  National  Biofuel  Policy,  2018 which bans import of five fuels for fuel blending purposes and if so, the details thereof;
- (c) whether any technical economic feasibility studies relating to production of second generation ethanol including the likely cost per unit for the ethanol generation  are  being  conducted,  if  so,  the  details  thereof  and  if  not,  the reasons therefor; and
- (d) the details of aggregate demand for ethanol from potable alcohol industry, chemical  industry  and  fuel  sector  respectively  along  with  the  aggregate projected ethanol generation for FY 2019-20?

## 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): Ethanol production/generation depends upon various factors viz. ethanol production  capacity,  availability  of  raw  materials  mainly  cane  molasses/juice, procurement price  of  ethanol  for  supply  under  Ethanol  Blended  Petrol  (EBP) Programme,  efficiency  of  plant  and  machinery,  etc.    As  per  information provided by Department of Food and Public Distribution (DFPD), the present ethanol production capacity in the country is about 270 crore litres, which has been  utilized  to  produce  ethanol  for  supply  to  Oil  Marketing  Companies (OMCs) under the EBP Programme.

DFPD is implementing an interest subvention scheme namely 'Scheme for Financial Assistance to Sugar Mills for Enhancement and Augmentation of Ethanol  Production  Capacity'.    Under  the  EBP  Programme,  OMCs  had tendered for 329 crore litres of ethanol for blending during the Ethanol Supply Year  (ESY)  2018-19.    Against  the  tendered  quantity,  suppliers  have  signed contracts for 244.7 crore litres as on 16.7.2019.  The projected requirement of ethanol during ESY 2021-22 is approximately 450 crore litres.

(b) :   No, Sir.

(c) : Oil PSUs have carried out technical economic feasible studies for setting up 2G ethanol plants. The price per litre of ethanol will vary depending upon various factors including the technology used.

(d)  :  The  aggregate  demand  for  alcohol  from  potable  alcohol  industry  and chemical industry during Financial Year (FY) 2019-20 is estimated to be about 100  crore  litres  and  80  crore  litres  respectively.  As  per  the  target  set  for blending for ESY 2019-20, the projected demand for ethanol by OMCs for ESY 2019-20 is about 280 crore litres.  As per the information provided by DFPD, the  projected  ethanol  generation  capacity  for  FY  2019-20  is  about  360  crore litres.

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