Lok Sabha Question No. 3323 (UNSTARRED), answered on 2021-03-16
Subject: Fuel Grade Ethanol
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Feroze Varun Gandhi

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF CHEMICALS AND PETROCHEMICALS

## LOKSABHA

## UNSTARRED QUESTION No. 3323 TO BE ANSWERED ON 16-03-2021

## Fuel Grade Ethanol

## 3323. SHRI FEROZE VARUN GANDHI

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- a)  the  measures  undertaken  by  the  Government  for  meeting  the  target  of  10  per cent  blending  of  fuel  grade  ethanol  with  petrol  by  2022  and  20%  blending  by 2025;
- b)  the  current  requirement  and  current  production  of  1G  and  2G  ethanol   in  the country along with the details for the last five years including discreet mention of sources/components contributing to the production;
- c)  the total number of people  who have benefited from the scheme along with the details including from the sugar industry and farmers, if any;
- d)  whether  the  Government  is  considering  schemes  to  increase  2G  ethanol production in order to deal with the rising problem of pollution from agricultural waste; and
- e)  if so, the details thereof?

## ANSWER

## MINISTER FOR CHEMICALS & FERTILIZERS (SHRI D.V. SADANANDA GOWDA)

(a),  (b),  (c),  (d)  and  (e): Under  the  Ethanol  Blended  Petrol  (EBP)  Programme  the Government  has  taken  the  following  steps  :   reintroduction  of  administered  price mechanism  for  ethanol  procurement,  allowing  ethanol  production  from  multiple  feedstocks like C & B heavy molasses, sugarcane juice, sugar, sugar syrup, damaged food grains,  surplus  stocks  of  rice  with  Food  Corporation  of  India  (FCI)   and  maize, differentiated  ex-mill  price  of  ethanol  based  on  raw  materials  used  for  its  production, amendment to the Industries (Development and Regulation) Act (IDR Act)  - 1951 for free  movement  of  ethanol  in  the  country,  reduction  of   GST  rate  to  5%  on  ethanol procured under the EBP Programme, formulation of a long term procurement policy for ethanol,  interest  subvention  scheme  for  augmentation  and  enhancement  of  ethanol production  capacities  in  the  country,  etc.  In  addition,  Public  Sector  Oil  Marketing Companies  (OMCs)  have  simplified  the  ethanol  procurement  procedure  thereby encouraging more vendors to take part in the Expression of Interest (EoI' s) released by them.

OMCs have informed that in the current Ethanol Supply Year (ESY), against an EoI quantity of 457 Crore litres they have allocated 325.5 Crore litres of ethanol from various  feedstock-wise  like  sugarcane  Juice/  sugar  syrup  /  sugar,  B  &  C  heavy molasses, damaged food grain, maize and surplus rice available with Food Corporation of India. Further, the OMCs have informed that supplies received by them in crore litres were 111.4  (2015-16),  66.5 ( 2016-17),  150.5  (2017-18),  118.57  (2018-19), 173.03 (2019-20) & 74.89 (2020-21- till 01.03.21). The aim of the EBP Programme is to address environmental concerns, providing remunerative  income to farmers,  reduce  import  bill  &  reduce  dependency  on  imports thereby creating jobs directly / indirectly. Due  to  remunerative  prices  of  ethanol  to  be  supplied  to  OMCs,  the  sugar mills/distilleries  could  able  to  generate  quick  revenue  which  improves  the  liquidity  of sugar mills to enable them to clear cane dues of farmers associated with the industry. The installation of distilleries also generates employment for public mainly in the rural area.

Further,  the  Government  has  allowed  procurement  of  ethanol  produced  from other non-food feedstock like cellulosic and ligno-cellulosic materials and has directed Oil CPSEs to set up Second Generation (2G) Ethanol Bio-refineries in different parts of the country using agri-residues and biomass which will be commissioned in 2-3 years of time.    Government  has  launched  a  scheme  'Pradhan  Mantri  JI-VAN  (JaivIndhanVatavaran  Anukool  fasalawashesh  Nivaran)  Yojana' to provide  financial  support  for promotion of 2G ethanol.

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