Lok Sabha Question No. 175 (UNSTARRED), answered on 2019-11-18
Subject: National Policy on Biofuels
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Chandeshwar Prasad, Kani K. Navas, Feroze Varun Gandhi, Andimuthu Raja, Unmesh Bhaiyyasaheb Patil, Balubhau (Alias Suresh Narayan) Dhanorkar

## LOK SABHA UNSTARRED QUESTION No. 175

## TO BE ANSWERED ON 18 th  November, 2019

## National Policy on Biofuels

## †175.  SHRI CHANDESHWAR PRASAD:

SHRI K. NAVASKANI:

SHRI FEROZE VARUN GANDHI:

SHRI A. RAJA:

SHRI UNMESH BHAIYYASAHEB PATIL:

SHRI BALUBHAU ALIAS SURESH NARAYAN DHANORKAR:

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

- (a) the salient features of the National Policy on Biofuels-2018 including the details of the funds sanctioned, allocated and utilised under this policy since its inception in the  country  along  with  the  present  status  of  the  infrastructural  investment  in  rural areas under this policy, State/UT-wise including Tamil Nadu;
- (b) whether the Government has increased the ethanol-blended petrol target across the country, if so, the details thereof and the reasons therefor along with the target set/achieved and the details of the current ethanol production capacity by the sugar mills and plan to re-start the closed sugar mills in the country including Tamil Nadu;
- (c) the details of biogas and biofuel plants which are proposed to be set up, under the Sustainable Alternative Towards Affordable Transportation (SATAT) Scheme along with the measures taken to promote the production and use of biogas and biofuel in the country;
- (d)  whether  the  Government  proposes  to  give  permission  for  mixing  ethanol  in petrol at comprehensive level, if so, the details of estimated plan outlay including expenditure likely to be incurred in this regard; and
- (e) whether the Government is planning on bringing the programme to generate biodiesel from edible oil, if so, the details of the plan along with the number of plants set  up  in  the  country  including  the  number  of  companies  involved  through  Public Private Partnership for manufacturing of bio-diesel, State/UT/Company-wise?

## ANSWER isVªksfy;e vkSj izkd`frd xSl ea=h

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

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- (a) Government  has  notified  the  new  National  Policy  on  Biofuels  -  2018  on 08.06.2018. The salient features of the Policy are as under:
- (i) Categorization of biofuels as 'Basic Biofuels' and 'Advanced Biofuels',
- (ii) Incentives, off-take assurance and viability gap funding for advanced biofuels,
- (iii) Allowing B-molasses, sugarcane juice, damaged food grains and surplus food grains for ethanol production,
- (iv) Setting  up  of  supply  chain  mechanisms  for  biodiesel  production  from  nonedible oilseeds, Used Cooking Oil, short gestation crops, and
- (v) Synergy of efforts  by  defining  roles  and  responsibilities  of  all  the  concerned Ministries/Departments with respect to biofuels.

In line with National Policy on Biofuels, Government has approved 'Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool Fasal Awashesh Nivaran) Yojana' for providing financial support to Integrated Bio-Ethanol Projects using lignocellulosic biomass & other renewable feedstock, with a total financial outlay of Rs 1969.50 crore for the period 2018-19 to 2023-24.

(b) The ethanol blended petrol percentage has progressively increased from 1.53% in ethanol supply year (ESY) 2013-14 (December 2103 to November 2014) to 4.22% in ESY 2017-18. Presently, as on 11.11.2019, 180.80 crore litre of Ethanol has been procured against target of ethanol procurement of 225 crore litre for Ethanol Supply Year 2018-19. Department of Food & Public Distribution (DFPD) has informed that the  total  effective  ethanol  production  capacity  of  the  distilleries  attached  with  the sugar  mills  in  the  country  is  about  355  crore  litres  per  annum.    DFPD  has  further informed that for reopening of closed public and cooperative sugar mills, responsibility  lies  with  concerned  State  Governments/Union  Territories.  In  case  of private sugar mills, the entrepreneur has to take steps to reopen closed sugar mills.

(c) Sustainable Alternative Towards Affordable Transportation (SATAT) scheme envisages establishing 5000 Compressed Bio Gas (CBG) plants across the country by 2023. Under this scheme, Oil Public Sector Undertakings have invited Expression of Interest  (EoI)  for  procuring  CBG  from  potential  entrepreneurs  and  has  offered  an assured price for off take of CBG.

(d) The Government through Oil Marketing Companies (OMCs) is implementing the  Ethanol  Blended  Petrol  (EBP)  programme  under  which,  OMCs  sell  ethanol blended petrol with percentage of ethanol upto 10% subject to its availability. OMCs procure ethanol for blending in petrol. In the current Ethanol Supply Year 2018-19, 180.80 crore litre of ethanol has been procured by OMCs upto 11.11.2019.

(e) To  encourage  procurement  of  biodiesel  produced  from  Used  Cooking  Oil (UCO), OMCs have floated Expression of Interest (EoI) for setting up of biodiesel plants from UCO processing plants on 10.08.2019 across India for 100 locations.  It was further extended to 200 locations on 10.10.2019.

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