Lok Sabha Question No. 81 (STARRED), answered on 2018-12-17
Subject: Ethanol Blending
Ministry: PETROLEUM AND NATURAL GAS
Asked by: RAVNEET SINGH

## LOK SABHA STARRED QUESTION No. 81 TO BE ANSWERED ON 17 th  DECEMBER, 2018

## Ethanol Blending

## *81. SHRI RAVNEET SINGH:

## 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 on course to achieve the target of 10 per cent ethanol  blending  in  petrol  by  2022,  if  so,  the  details  thereof  along  with  the achievements made in this regard during the last two years and the current year;
- (b) whether  the  Government  has  revised/proposes  to  revise  the  price  of ethanol to achieve the said target and if so, the details thereof;
- (c) whether the Government is aware of the fact that India is one of the most inefficient producers of ethanol with regard to its water footprint which  has a detrimental effect on water availability and if so, the details thereof;
- (d) whether the Government is aware that certain States are charging a tax on sale of ethanol to other States which  is in violation of the Industries (Development and Regulation) Amendment Act, 2016; and
- (e) if so, the details thereof along with the action taken by the Government in this regard?

## ANSWER

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

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

******

(a) to (e) :  A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PART (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO. 81 TO BE ANSWERED ON 17.12.2018  REGARDING ETHANOL BLENDING BY SHRI RAVNEET SINGH.

(a)  Government  is  implementing  Ethanol  Blended  Petrol  (EBP)  Programme through  Oil  Marketing  Companies  (OMCs).  At  present,  Public  Sector  OMCs are selling upto 10% ethanol blended petrol.  The National Policy on Biofuels 2018 envisages an indicative target of 20 per cent ethanol blending in petrol by 2030. The ethanol blend percentage achieved during the last two ethanol supply years and the current ethanol supply year is tabulated below:

| Ethanol Supply Year*   |   Quantity procured (in crore lires) | Average Blend Percentage   |
|------------------------|--------------------------------------|----------------------------|
| 2015-16                |                               111.41 | 3.51%                      |
| 2016-17#               |                                66.51 | 2.07%                      |
| 2017-18                |                               150.51 | 4.22%                      |

- *Ethanol Supply Year is period from 1 st December of the current year to 30 th November of the next year
- # Drop in blend percentage due to drought in Maharashtra and Karnataka leading to lower availability of ethanol

(b)     Government has reintroduced administered price mechanism for ethanol procurement under EBP Programme since December 2014. For ethanol supply year  2018-19,  the  Government  has  fixed  ethanol  procurement  price  based  on raw material utilized for ethanol production as follows:

- (i)      From C-heavy molasses at Rs. 43.46 per litre.
- (ii)      From B heavy molasses / partial sugarcane juice at Rs.52.43 per litre.
- (iii)     Price of ethanol for the mills, who will divert 100% sugarcane juice for production  of  ethanol  thereby  not  producing  sugar,  has  been  fixed  at Rs.59.19 per litre.
- (c)     Presently, ethanol for EBP Programme is coming from molasses route, a byproduct of sugar industry. With a view to increase ethanol availability, the National  Policy  on  Biofuels-2018  also  provides  for  ethanol  production  from sugar containing materials, starch containing materials, cellulosic materials and forestry  residues  or  other  renewable  resources  like  industrial  waste  including petrochemical route.

(d) & (e): Subsequent to amendment in Industries (Development & Regulation) Act,  1951,  Central  Government  has  been  regularly  interacting  with  the  State Governments for implementing the amended provisions. Till date, nine States, viz.,  Karnataka,  Goa,  Maharashtra,  Gujarat,  Bihar,  Chhattisgarh,  Tamil  Nadu, Andhra Pradesh and Punjab have implemented the amended provisions. Other important States/UT, who have not fully implemented the amended provisions of IDR Act, 1951 are Delhi, Uttar Pradesh, Haryana, Rajasthan, West Bengal, Madhya  Pradesh,  Uttarakhand  and  Telangana.    Ministry  of  Petroleum  and Natural Gas has taken up the matter with concerned States/UTs.

*****