Lok Sabha Question No. 2994 (UNSTARRED), answered on 2021-03-15
Subject: Ethanol Production
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Sujay Radhakrishna Vikhepatil, Heena Vijaykumar Gavit, Unmesh Bhaiyyasaheb Patil, Aparajita Sarangi, Sambhajirao Mane Dhairyasheel, Shrikant Eknath Shinde, P.P. Chaudhary, Margani Bharat

## LOK SABHA UNSTARRED QUESTION No. 2994 TO BE ANSWERED ON 15 th  March, 2021

## Ethanol Production

## 2994. DR. SUJAY RADHAKRISHNA VIKHE PATIL:

DR. HEENA GAVIT:

SHRI UNMESH BHAIYYASAHEB PATIL:

SHRIMATI APARAJITA SARANGI:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

DR. SHRIKANT EKNATH SHINDE:

SHRI P.P. CHAUDHARY:

SHRI MARGANI BHARAT:

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

- (a) the total quantum of production of ethanol in the country during the last three years and the current year, year-wise and State-wise including the percentage of ethanol blended with petrol in the present;
- (b)  whether  the  Government  targets  on  production  of  ethanol  blended  fuel  are being met, if so, the details thereof and if not, the reasons therefor including the measures undertaken by the Ministry to meet the said target;
- (c) the current requirement and current production of 1G and 2G ethanol in India along with the details of sources/components contributing to the said production and the details of people benefited from the scheme including sugar industry and farmers, if any;
- (d)  whether  the  Government  is  considering  any  schemes  to  increase  2G  ethanol production in order to deal with rising problem of pollution from agricultural waste, if so, the details thereof;
- (e)  whether  the  ethanol  produced  from  molasses  instead  of  sugarcane  is  more useful and beneficial and if so, the details thereof and whether the production of ethanol directly from sugarcane is permitted in the country, if so, the details thereof  along  with  the  name  of  major  mills  which  are  producing  ethanol directly from sugarcane; and
- (f) whether the Government has approved a new scheme worth Rs. 4500 crores to increase ethanol production in the country, if so, the details thereof along with the  other  measures  taken/being  taken  by  the  Government  to  increase  the production of ethanol and promote its usage in the country?

## ANSWER

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

(a): Department of Food & Public Distribution (DFPD) has informed that the ethanol produced by  distilleries  is  mainly  supplied  to  Oil  Marketing  Companies  under  Ethanol Blended with Petrol (EBP) Programme. The details of the quantity of ethanol received by OMCs for blending in petrol under  EBP Programme for the  last three  Ethanol Supply Year  (ESY)  and  current  ESY  along  with  percentage  of  ethanol  blended  with  petrol provided by OMCs are as under:

| in Crore Litre                                       | in Crore Litre   | in Crore Litre   | in Crore Litre   | in Crore Litre           |
|------------------------------------------------------|------------------|------------------|------------------|--------------------------|
| ESY (1 st Dec of the year to 30 th Nov of next year) | 2017-18          | 2018-19          | 2019-20          | 2020-21 ( till 01.03.21) |
| Ethanol received by PSU OMCs                         | 150.5            | 188.57           | 173.03           | 74.89                    |
| Percentage Blending                                  | 4.2%             | 5.0%             | 5.0%             | 6.9%                     |

The State wise receipt of ethanol by OMCs is given in Annexure A .

(b): The  Government  has  advised  the  OMCs  to  blend  10%  ethanol  in  petrol.  The ethanol blended petrol percentage has progressively increased from 1.53% in ESY 201314 (December 2013 to November 2014) to 5% in ESY 2019-20. For ESY 2020-21 the Public Sector OMCs have allocated 325.5 crore litres of ethanol upto 01.03.2021 against requirement of 457 Crore litres for ESY 2020-21.

Under the EBP Programme, Government has initiated several interventions both on the supply  and  demand  side.  The  important  initiatives  are:    reintroduction  of  administered price  mechanism  for  ethanol  procurement,  enhancement  of  scope  of  raw  material  by allowing  ethanol  production  from  multiple  feed-stocks  like  C  &  B  heavy  molasses, sugarcane juice, sugar, sugar  syrup,  damaged food  grains,  maize  and  surplus  stocks  of rice with Food Corporation of India (FCI), differentiated ex-mill price of ethanol to be paid to ethanol suppliers 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  EoIs released  by  them.  Due  to  the  above  initiatives  taken  by  the  Government  the  ethanol procurement has increased from 38 crore litres in ESY 2013-14 to 173.03 crore litre in ESY 2019-20.

(c): OMCs have  informed  that  in  the  current  year  they  have  allocated  325.5  Crore litres  of  ethanol  against  the  requirement  of  457  Crore  litres  ethanol.The  source-wise breakup of the offers of 325.5croreliters is as under:

| Raw material                            |   Qty (Cr Litre) |
|-----------------------------------------|------------------|
| SCJ (Sugarcane Juice/Sugar Syrup/Sugar) |             42.2 |
| BHM(B-Heavy Molasses)                   |            182   |
| CHM(C-Heavy Molasses)                   |             59.5 |
| DFG (Damaged Food Grains)/Maize         |             38.4 |
| SR (Surplus Rice)                       |              3.4 |

This quantity of 325.5 crore litres of ethanol allocated is from 1G ethanol plants only. At present there is no 2G plant producing ethanol in the country.

- (d): Government has allowed procurement of ethanol produced  from other non-food feedstock like cellulosic and lingo-cellulosic materials. Government has also launched a scheme  'Pradhan  Mantri  JI-VAN  (Jaiv  Indhan-  Vatavaran  Anukool  fasal  awashesh Nivaran)  Yojana'  to  provide  financial  support  for  promotion  of  2G  ethanol  with  a financial outlay of Rs.1969.50 crore.
- (e): The  properties  of  the  end  product  viz.,  ethanol  produced  from  molasses  and sugarcane are the same. In fact molasses is a byproduct of the sugar-making process, and it comes from crushed sugar cane. Government has now also allowed the production of ethanol from sugarcane juice, sugar syrup & sugar.The details of the suppliers provided by  the  OMCs  who  have  offered  ethanol  produced  from  sugarcane  juice  in  the  current ESY are given in Annexure B .
- (f): The Government has notified schemes for extending financial assistance to project proponents  for  enhancement  of  their  ethanol  distillation  capacity  by  setting  up  of  new distilleries/expansion of existing distilleries/installation of Zero Liquid Discharge (ZLD) system  and  Molecular  Sieve  Dehydration  (MSDH)  Column  etc.  for  which  interest subvention  @6%  per  annum  or  50%  of  the  actual  rate  of  interest  charged  by  lending institutions whichever is lower on the loans  advanced by  Banks/NCDC/IREDA/NBFCs and any other financial institutions. So far a total of Rs. 4687 crore has been earmarked towards payment of interest subvention under these schemes.

The various measures taken by the Government from time to time to increase production of ethanol in the country and to promote its supply to OMCs under EBP Programme have been provided in the reply of para (b) of this question.

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Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 2994 for 15.03.2021.

## State wise receipt of ethanol by OMCs

| State/UT         | Ethanol Receipt in Crore Litre   | Ethanol Receipt in Crore Litre   | Ethanol Receipt in Crore Litre   | Ethanol Receipt in Crore Litre   |
|------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|
| State/UT         | 2017-18                          | 2018-19                          | 2019-20                          | 2020-21 (upto 01.03.21)          |
| Andhra Pradesh   | 6.49                             | 10.16                            | 5.34                             | 4.23                             |
| Bihar            | 6.28                             | 6.84                             | 8.39                             | 2.76                             |
| Chhattisgarh     | 0.00                             | 3.26                             | 4.70                             | 1.91                             |
| Delhi            | 10.91                            | 8.40                             | 6.69                             | 1.69                             |
| Goa              | 1.17                             | 1.21                             | 0.79                             | 0.67                             |
| Gujarat          | 6.68                             | 13.36                            | 12.36                            | 4.75                             |
| Haryana          | 7.35                             | 12.38                            | 13.07                            | 4.32                             |
| Himachal Pradesh | 0.00                             | 0.07                             | 1.62                             | 0.70                             |
| Jharkhand        | 0.00                             | 0.07                             | 2.41                             | 0.76                             |
| Karnataka        | 17.81                            | 19.40                            | 18.77                            | 7.66                             |
| Kerala           | 0.00                             | 0.00                             | 0.00                             | 0.90                             |
| Madhya Pradesh   | 1.79                             | 9.31                             | 10.24                            | 3.96                             |
| Maharashtra      | 35.99                            | 29.78                            | 21.92                            | 12.35                            |
| Odisha           | 0.00                             | 0.00                             | 0.35                             | 0.71                             |
| Punjab           | 6.56                             | 10.40                            | 11.53                            | 3.31                             |
| Rajasthan        | 0.10                             | 4.10                             | 2.67                             | 0.64                             |
| Tamil Nadu       | 0.99                             | 7.48                             | 3.52                             | 6.11                             |
| Telangana        | 10.90                            | 8.88                             | 4.65                             | 4.09                             |
| Uttar Pradesh    | 34.01                            | 38.70                            | 40.15                            | 12.55                            |
| Uttrakhand       | 2.00                             | 2.45                             | 2.44                             | 0.75                             |
| West Bengal      | 1.47                             | 2.30                             | 1.44                             | 0.09                             |
|                  | 150.50                           | 188.57                           | 173.03                           | 74.89                            |

## Annexure referred to in reply to part (e) of Lok Sabha Unstarred Question No. 2994 for 15.03.2021.

## List of suppliers who have offered ethanol produced from sugarcane juice in the

## current ESY

| ESY 20-21   | ESY 20-21                                                             | ESY 20-21   | ESY 20-21                                                        |
|-------------|-----------------------------------------------------------------------|-------------|------------------------------------------------------------------|
| SN          | Suppliers Names                                                       | SN          | Suppliers Names                                                  |
| 1           | Bhalkeshwar Sugars Ltd                                                | 21          | PurnaSahajariSakharKarkhana Ltd                                  |
| 2           | Core Green Sugar &Fuels Pvt Ltd                                       | 22          | RajarambapuPatilSahakariSakharKarkh ana Ltd Rajaramnagar         |
| 3           | Dalmia Bharat Sugar And Industries Limited (Distillery Unit - Nigohi) | 23          | Rana Sugars Ltd. (Distillery Division)                           |
| 4           | DCMShriram Limited Distillery Unit-Ajbapur                            | 24          | Rena Ssk Ltd                                                     |
| 5           | E.I.D. Parry (India) Ltd - Haliyal                                    | 25          | Shamanur Sugars Limited                                          |
| 6           | E.I.D. Parry (India) Ltd -Nellikuppaam                                | 26          | Sharayu Agro Industries Ltd                                      |
| 7           | Eid Parry (India) Ltd                                                 | 27          | Shree Chh.ShahuS.S.K.Ltd. Kagal                                  |
| 8           | Eid Parry India Ltd                                                   | 28          | Shree DurgaKhandsari Sugar Mills                                 |
| 9           | Gayatri Sugars Ltd                                                    | 29          | Shree Renuka Sugars Limited                                      |
| 10          | Gem Sugars Limited                                                    | 30          | Shree Renuka Sugars Limited Athani                               |
| 11          | Godavari Biorefineries Ltd                                            | 31          | Shree TatyasahebKoreWaranaSahakariSakhar Karkhana Limited        |
| 12          | Jakraya Sugar Ltd                                                     | 32          | ShreenathMhaskobaSakharKharkhana Ltd ShreenathnagarPatethanDaund |
| 13          | Jamkhandi Sugars Limited                                              | 33          | ShriSaipriya Sugars Limited Distillery Division                  |
| 14          | Jaywant Sugars Ltd                                                    | 34          | Swaraj India Agro Limited                                        |
| 15          | KisanveerSssk Ltd                                                     | 35          | The Sanjivani (Takli) SahakariSakharKarkhana Ltd Sahajanandnagar |
| 16          | Kpr Sugar Mill Limited                                                | 36          | Vijayanagar Sugar Pvt Ltd                                        |
| 17          | LokneteSunderraojiSolankeSahakariSakharKarkhana Ltd.                  | 37          | VikasratnaVilasraoDeshmukhManjara S.S.S K. Ltd.                  |
| 18          | Manas Agro Industries And Infrastructure Ltd                          | 38          | Vishwaraj Sugar Industries Limited                               |
| 19          | Nirani Sugars Ltd Distillery Division                                 | 39          | Vitthal Corporation Ltd                                          |
| 20          | Padmshri Dr VitthalraoVikhePatilSahakariSakharKarkhana Ltd.           | 40          | Yedeshwari Agro Products Ltd.                                    |

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