Lok Sabha Question No. 407 (STARRED), answered on 2020-03-23
Subject: Biofuel Policy, 2018
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shrikant Eknath Shinde, Sambhajirao Mane Dhairyasheel

## LOK SABHA

## STARRED QUESTION No. 407

## TO BE ANSWERED ON 23 rd  March, 2020

## Biofuel Policy, 2018

- *407. DR. SHRIKANT EKNATH SHINDE:

## SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

## 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 introduced the new Biofuel Policy in 2018;
- (b)  the details of the Letters of Intent obtained in furtherance of the Policy to manufacture biofuels, categorised by type of biofuel;
- (c)  whether the Government is likely to achieve the target of ethanol blended petrol  as  mentioned  in  the  Biofuel  Policy,  2018  and  if  not,  the  reasons therefor;
- (d)  the  details  of  the  budget  allocated  for  implementing  the  Biofuel  Policy, 2018 and the amount spent till now, State-wise; and
- (e)  whether  the  rules  have  been  formulated  under  the  Policy  and  if  so,  the details  thereof  and  if  not,  the  reasons  therefor  and  the  present  stage  of drafting of the rules?

## 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.

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## STATEMENT REFERRED TO IN REPLY TO PART (a) TO (e) OF THE LOK SABHA STARRED QUESTION No. 407 TO BE ANSWERED ON 23.03.2020 REGARDING BIOFUEL POLICY, 2018 BY DR. SHRIKANT EKNATH  SHINDE  AND  SHRI  DHAIRYASHEEL  SAMBHAJIRAO MANE.

(a) to (c): The Government has notified the National Policy on Biofuels-2018 on 4th June 2018. This policy has laid out indicative targets of achieving 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel in the whole country by 2030.

The Government is promoting biofuels with the broader objectives of reducing import dependency, generating  employment, providing better  remuneration to farmers, promoting better waste management practices, etc.

The procurement of ethanol under the ethanol blended petrol (EBP) programme has  increased  from  38  crore  litre  during  ethanol  supply  year  (ESY)  (1st December to 30th November) 2013-14 to almost five times to 188.6 crore litre during ESY 2018-19. The important measures taken to increase the production of ethanol for blending include:

(i)  Encouraging  production  of  ethanol  from  sugarcane  juice  and  sugar/  sugar syrup.

(ii) Fixing remunerative ex-mill price of ethanol from various feed stocks.

(iii) Extending interest subvention to distilleries.

(iv) Amendment to Industries (Development & Regulation) Act, 1951, for free movement of denatured ethanol for Ethanol Blended Petrol (EBP) Programme.

(v)  Reduction in Goods & Service Tax on ethanol meant for EBP Programme from 18% to 5%.

(vi)  Extension  of  EBP  Programme  to  whole  of  India  except  island  UTs  of Andaman Nicobar and Lakshadweep with effect from 01.04.2019.

(vii) Enhancing ethanol storage at Oil Marketing Companies locations.

(viii) Formulating an 'Ethanol Procurement Policy on a long-term basis under Ethanol Blended Petrol (EBP) Programme'.

In  the  ESY  2019-20,  till  09.03.2020,  the  Oil  Marketing  Companies  (OMCs) have released Letter of Intents (LoIs) for procurement of 156.47 crore litre of ethanol.

Government,  to  further  augment  ethanol  supplies,  allowed  procurement  of second generation ethanol  produced from other non-food feedstock like cellulosic and lingo-cellulosic materials including petrochemical route. Accordingly,  Oil  PSUs  have  planned  to  establish  twelve  2G  Ethanol  Biorefineries in 11 States of the country.

For promotion of biodiesel, Used Cooking Oil (UCO) has been identified as a potential raw material for biodiesel production and public sector oil marketing companies (OMCs) have floated an Expression of Interest (EoI) for procurement  of  Biodiesel  produced  from  UCO  across  200  locations.  29  EoIs have  been  received  by  OMCs  for  setting  up  46  plants  for  manufacturing Biodiesel from UCO.

With a view to promote the use of Compressed Bio Gas (CBG) as automotive fuel,  Sustainable  Alternative  Towards  Affordable  Transportation  (SATAT) initiative  has  been  launched  on  01.10.2018  under  which  OMCs  are  inviting Expression  of  Interest  (EoI)  from  potential  entrepreneurs  to  produce  CBG. SATAT initiative envisages for establishment of 5000 CBG plants across the country with an estimated production of 15 MMT CBG per annum by 2023. Till 15.03.2020, Oil PSUs have issued Letters of Intent (LoIs) for establishment of 493 CBG plants in response of EoIs floated.

(d):  In  March,  2019,  Government  has  notified  the  'Pradhan  Mantri  JI-VAN (Jaiv IndhanVatavaran Anukool  fasal awashesh Nivaran) Yojana' for providing  financial  support  to  integrated  bioethanol  projects  for  setting  up second generation ethanol projects in the country using lignocellulosic biomass and other renewable feedstock. The total financial outlay for the scheme is Rs. 1969.50 crore for the period 2018-19 to 2023-24.

(e):  The  biofuel  policy  comprehensively  covers  various  aspects  of  biofuel program including strategy and approach, interventions and enabling mechanism, role of stake holders, institutional mechanism, international cooperation, etc.  At this stage, there is no proposal to formulate rules.

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