Lok Sabha Question No. 3141 (UNSTARRED), answered on 2018-12-31
Subject: Bio Gas Plants
Ministry: PETROLEUM AND NATURAL GAS
Asked by: VINOD KUMAR BOIANAPALLI, DARSHANA VIKRAM JARDOSH, GOPALAKRISHNAN CHINNARAJ, NAGARAJAN P., JANARDAN SINGH SIGRIWAL

## LOK SABHA UNSTARRED QUESTION No. 3141 TO BE ANSWERED ON 31 st DECEMBER, 2018

## Bio Gas Plants

3141.   SHRI B. VINOD KUMAR: SHRIMATI DARSHANA VIKRAM JARDOSH: DR. C.GOPALAKRISHNAN: SHRI P. NAGARAJAN: SHRI JANARDAN SINGH SIGRIWAL:

## isVªksfy;e vkSj izkd`frd xSl ea=h

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

- (a) whether the Government has launched SATAT initiative to promote Compressed BioGas as an alternative, green transport fuel for efficient municipal solid waste management and produce bio-fuel for commercialisation for the use of four-wheelers and trucks to minimise the use of petrol/diesel and bring down dependency on crude oil imports and if so, the details thereof;
- (b) the quantum of bio-fuels and bio-diesel produced and available for consumption in the country as on date, State/UT-wise along with steps being taken to increase the production of bio-fuels in the country;
- (c) whether the Government proposes to set up five factories to produce ethanol from the straw/hay of paddy and wheat and sugarcane wastes and if so, the details thereof along with the places identified for the purpose and the time by which the production is likely to start in these plants;
- (d) whether  the  Government  has  approached  the  Ministry  of  Agriculture  and  Farmers Welfare to increase cultivation of bio-fuel crops and if so, the details thereof along with the updated  status  of  introduction  of  bio-fuels  and  bio-diesel  as  a  suitable  alternative  to  the petroleum products;
- (e) the  quantity  of  ethanol  produced  in  the  country  during  the  last  three  years  and  the current  year  along  with  the  projected  demand  and  supply  of  ethanol  by  the  end  of  current financial year including its cost of production in the country; and
- (f) whether the Government has received certain complaints against the owners/operators of sugar industries and OMCs relating to the pricing of ethanol blended petrol and if so, the details  thereof  along  with  the  action  taken  in  this  regard  and  measures  taken  to  augment production and use of ethanol in the country?

## ANSWER

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

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

******

- (a) Government  is  promoting  the  use  of  Compressed  Bio  Gas  (CBG)  as  an  alternative green transport fuel, which is purified and compressed biogas, produced through a process of anaerobic  decomposition  from  various  waste  /  biomass  sources  including  Municipal  solid waste. In this direction, Oil PSUs have launched 'Sustainable Alternative Towards Affordable Transportation'  i.e.  'SATAT'  initiative.  Under  this  initiative,  Public  Sector  Oil  Marketing Companies  (OMCs)  and  GAIL  have  invited  Expression  of  interest  (EOI)  to  procure  CBG from potential entrepreneurs for establishment of 5000 CBG plants across the country with an estimated production of 15 MMT CBG per annum by 2023. OMCs and GAIL have offered Rs 46/- per kg delivered price for procurement of CBG.
- (b) State wise ethanol procured by Oil Marketing Companies (OMCs)  for  EBP Programme  during  ethanol  supply  year  2017-18  and  biodiesel  procurement  is  given  at Annexure .  To  increase  indigenous  production  of  ethanol  the  Government  has  taken  many steps including re-introduction of administered price mechanism, opening  of alternate route for  ethanol  production,  Regular  Interaction  with  States,  IDR  Act  Amendment,  Interest Subvention  scheme  namely  -  'Scheme  for  augmenting  and  enhancing  ethanol  production capacity', National Policy on Biofuels - 2018, Fixation of differential  price of ethanol from C heavy molasses, B heavy molasses/partial sugarcane juice and 100% sugarcane juice.
- (c) In  December,  2014,  the  Government  allowed  Second  Generation  (2G)  route  for procurement of ethanol.   Oil PSUs have planned to establish 2G Ethanol bio-refineries across the country. They have also entered into Memorandums of Understanding (MoUs) with State Governments  and  Technology  Providers  for  setting  up  five  2G  ethanol  bio-refineries.    On 25.12.2016, foundation stone of the first 2G ethanol bio-refinery to be set up by Hindustan Petroleum Corporation Limited in Bathinda, Punjab, has been laid. Groundbreaking ceremony for 2G Ethanol bio-refinery of Bharat Petroleum Corporation Limited in Bargarh, Odisha, has been held on 10.10.2018.
- (d) The Government  has notified National Policy on Biofuels-2018 under which Department of Agriculture, Cooperation & Farmers Welfare under Ministry of Agriculture & Farmers Welfare has been entrusted with the task of production of plant  materials  through Nurseries and plantations for biofuels in coordination with other Ministries.
- (e) The production of ethanol/ alcohol in the country is approximately 310 Cr. Liters per annum. This also varies depending on sugarcane production. Ethanol/Alcohol is mainly used in chemical, potable liquor, pharma sectors and for EBP programme.

The  ethanol  procured  by  OMCs  under  the  EBP  Programme  during  the  last  three ethanol supply years and the current ethanol supply year is tabulated below:

| Ethanol Supply Year*   |   Quantity Procured (in crore liters) |
|------------------------|---------------------------------------|
| 2014-15                |                                 67.42 |
| 2015-16                |                                111.41 |
| 2016-17#               |                                 66.51 |
| 2017-18                |                                150.51 |

The  procurement  price  of  ethanol  under  the  EBP  programme  excluding  applicable  GST ranges from Rs. 43.46 per liter to Rs. 59.19 per liter depending upon the feedstock used..

- (f) Oil Marketing Companies (OMCs) namely IOCL, HPCL & BPCL have reported that they have not received any complaint related to pricing of ethanol blended petrol. Measures taken to augment production and use of ethanol in the country are given in reply to part (b) above.

ANNEXURE REFERED TO IN REPLY TO PART (b) OF THE LOK SABHA UNSTARRED QUESTION  NO.  3141  ASKED  BY  SHRI  B.  VINOD  KUMAR;  SHRIMATI  DARSHANA VIKRAM  JARDOSH;    DR.  C.GOPALAKRISHNAN;  SHRI  P.  NAGARAJAN  AND  SHRI JANARDAN SINGH SIGRIWAL FOR ANSWER ON 31.12.2018

State wise ethanol procured by Oil Marketing Companies (OMCs) for EBP Programme during ethanol supply year 2017-18

| State          |   Quantity Procured in Cr Lit |
|----------------|-------------------------------|
| Andhra Pradesh |                          6.49 |
| Bihar          |                          6.27 |
| Delhi          |                         10.91 |
| Goa            |                          1.18 |
| Gujarat        |                          6.68 |
| Haryana        |                          7.35 |
| Karnataka      |                         17.81 |
| Madhya Pradesh |                          1.79 |
| Maharashtra    |                         35.99 |
| Punjab         |                          6.56 |
| Rajasthan      |                          0.1  |
| Tamil Nadu     |                          0.99 |
| Telangana      |                         10.9  |
| Uttar Pradesh  |                         34.01 |
| Uttarakhand    |                          2    |
| West Bengal    |                          1.47 |
| Grand Total    |                        150.51 |

State wise biodiesel procured by Oil Marketing Companies (OMCs) during May 2018 to November 2018

| State          |   Quantity Procured in Cr Lit |
|----------------|-------------------------------|
| Andhra Pradesh |                          2.34 |
| Gujarat        |                          0.19 |
| Odisha         |                          1.01 |
| Telangana      |                          1.83 |
| Uttar Pradesh  |                          0.12 |
| West Bengal    |                          2.73 |
| Grand Total    |                          8.22 |