Lok Sabha Question No. 883 (UNSTARRED), answered on 2018-07-23
Subject: Setting up of Ethanol Plant
Ministry: PETROLEUM AND NATURAL GAS
Asked by: RAKSHA NIKHIL KHADSE, CHINTAMANI MALVIYA, PRATHAP SIMHA

## LOK SABHA

## UNSTARRED QUESTION No. 883 TO BE ANSWERED ON 23 rd  JULY, 2018

## SETTING UP OF ETHANOL PLANT

## 883. SHRIMATI RAKSHATAI KHADSE: PROF. CHINTAMANI MALVIYA: SHRI PRATHAP SIMHA:

## isVªksfy;e vkSj izkd`frd xSl ea=h

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

- (a)  whether the Government proposes to introduce for setting up plants based on new technology by consuming Bio-Mass to produce Bio-Gas, Bio-CNG and enriched manure to curb the menace of stubble burning and if so, the details thereof along with the locations identified for the purpose;
- (b)  whether the Government has approved the Mechanism for procurement of Ethanol by Public Sector Oil Marketing Companies (OMCs) to carry out the Ethanol  Blended  Petrol  (EBP)  Programme  and  if  so,  the  details  and objectives thereof;
- (c)  whether EBP Programme was launched by the Government in 2003 on pilot basis which has been subsequently extended to the Notified 21 States and 4 UTs  and  if  so,  the  details  thereof  along  with  the  specific  advantages  of blending Ethanol with Petrol;
- (d)  whether  the  Government  proposes  to  make  more  use  of  ethanol  and introduce the vehicles propelled with mixed fuel having 90 per cent ethanol and also taken up the  matter  regarding duty  structure on  ethanol  with  the Ministry of Finance and if so, the details thereof along with the steps taken to enhance/encourage the use of ethanol in vehicles to make the environment clean;
- (e)  the  benefits  likely  to  be    extended  for  the  betterment  of  the  sugarcane farmers and sugar producers; and
- (f)    whether  some  constraints  have  been  noticed  in  implementing  the  EBP Programme, if so, the details thereof and the corrective steps taken/being taken in this regard?

## 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) Government  is implementing a scheme on Energy Recovery from Urban, Industrial  and  Agricultural  Wastes/Residues  which  promotes  generation  of Biogas/Bio-CNG/Power from Urban waste, Agricultural Waste and Industrial Wastes/Effluents.    Plants  under  this  scheme  are  set  up  by  private  developers and  location  &  other  modalities  of  the  plants  are  decided  by  them  based  on projects financial viability and availability of waste.

(b) Public Sector Oil Marketing Companies blend ethanol in Petrol under the Ethanol Blended Petrol Programme.  The Government has recently revised the ex-mill price of ethanol derived out of C-heavy molasses and B-heavy molasses as Rs. 43.70 per litre and Rs. 47.49 per litre respectively for the forthcoming sugar season 2018-19 during ethanol supply period from 1 st December, 2018 to 30 th November, 2019.  These prices are exclusive of GST and Transportation charges.

(c) Ethanol  Blended  Petrol  (EBP)  Programme  was  launched  w.e.f.  1 st January, 2003 in nine States and four Union Territories for sale of 5% ethanol blended  petrol.  Government  has  directed  the  Public  Sector  Oil  Marketing Companies (OMCs) to sell 5% Ethanol Blended Petrol as per Bureau of Indian Standards  specifications  in  the  notified  States  and  UTs  of  the  country  with effect from 1 st November, 2006, subject to commercial viability. Presently, the Government, through OMCs, is implementing EBP Programme in twenty one States and four Union Territories under which, OMCs sell EBP with percentage of ethanol upto 10%.  Ethanol has higher octane than petrol and burns slowly and completely resulting in reduced emissions. Government is promoting use of EBP  to  address  environmental  concerns,  provide  remunerative  income  to farmers and to reduce import bill.

(d) At present, BIS standards allow blending of ethanol in Petrol upto 10 per cent.    Ministry  of  Petroleum  and  Natural  Gas  has  taken  up  the  matter  of reduction  of  GST  rate  on  ethanol  with  Department  of  Revenue,  Ministry  of Finance.  Government has taken many steps including easing the procurement procedure, fixing administered price of ethanol for C-heavy molasses, B-heavy molasses and sugarcane juice route, etc. to increase ethanol blending in Petrol.

(e) In  addition  to  above  steps,  the  Government  has  recently  approved  a scheme  to provide  interest  subvention    @  6%  per  annum  or  50%  of  rate  of interest  charged  by  banks,  whichever  is  lower,  for  augmenting  capacity  & upgradation of distilleries.

(f) Non-availability  of  full  quantity  of  ethanol  required  to  achieve  targeted percentage envisaged in EBP Programme is a major constraint in implementing the EBP Programme.  The important steps taken by Government to address the issue are given at (d) above.

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