Lok Sabha Question No. 3185 (UNSTARRED), answered on 2021-12-16
Subject: Ethanol Production
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Sanjay Jaiswal

## LOK SABHA UNSTARRED QUESTION No. 3185 TO BE ANSWERED ON 16 th DECEMBER, 2021

## ETHANOL PRODUCTION

## 3185. DR. SANJAY JAISWAL:

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

- (a)  whether  the  Government  has  carried  out  State-wise  assessment  of  ethanol production capabilities;
- (b)  if so, the details thereof;
- (c)  the total quantum of subsidies given for promotion of ethanol production in States including Bihar during the last five years;
- (d)  whether  the  Government  has  carried  out  assessment  of  the  difference  in ethanol produced from feedstock and molasses and if so, the details thereof;
- (e)  whether  the  Government  has  set  fuel-blending  targets  for  petroleum  run vehicles and if so, the details thereof; and
- (f)  the current status of fuel blending, State-wise including Bihar?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI RAMESWAR TELI)

(a)  &  (b):  Department  of  Food  and  Public  Distribution  (DFPD)  has  informed that as on 30 th November, 2021, the alcohol and ethanol distillation capacity in the country is around 787 crore litres per annum (519crore litres per annum from molasses  based  distilleries  and  268  crore  litres  per  annum  from  grain  based distilleries.).

(c): DFPD  has  notified  the  interest  subvention  schemes  during  2018,  2019and 2021  covering  multiple  feed  stocks  for  ethanol  production  to  enhance  and augment ethanol distillation capacity in the country, including Bihar. Under the aforesaid scheme, the Governmentis extending financial assistance in the form of interest subvention for five years including one year moratorium against the

loan  availed  by  project proponents  from  banks/financial  institutions  at 6%  per annum or 50% of the rate of interest charged by the them, whichever is lower. Under this scheme, loan amount of about Rs.8643 crore has been sanctioned by the  banks/financial  institutions  to  132  projects.  Out  of  which,  as  on  19 th November,  2021,  Rs.4173  crore  has  been  disbursed  to  93  projects.  The Government of Bihar has also notified the Ethanol Production Promotion Policy, 2021,  wherein  interest  subvention  is  offered  to  eligible  project  proponents  at 10% on project  term-loan  apart  from  capital  subsidy  up  to  five  crore  rupees, SGST and Electricity Duty reimbursement up to 100% of the project cost, 100% exemption from payment of stamp duty & land conversion fees and employment cost subsidy & skill development subsidy.

(d):  DFPD has informed that for Ethanol Supply Year (ESY) (Dec-Nov) 202021,  the  estimated  ethanol  recovery  is  223  litre  from  one  tonne  of  C  heavy molasses, 310 litre from one tonne of B heavy molasses and 70 litre from cane juice/syrup    from  one  tonne  of  sugarcane.  This  difference  is  primarily  on account of variable sugar content in these feed stocks.

(e): The National Policy on Biofuels - 2018 provides an indicative target of 20% blending of  ethanol in petrol and  5%  blending of biodiesel in diesel by 2030. Government  has  advanced  the  target  of  20%  blending  of  ethanol  in  petrol  to 2025-26.

(f): Presently,  under  the  Ethanol  Blended  Petrol  (EBP)  programme,  Public Sector Oil Marketing Companies are selling 10% ethanol blended petrol, across India,  including Bihar, as per availability.  The  average  ethanol  blending percentage in petrol for ESY 2020-21 was 8.1%. Under the Biodiesel blending programme,  5% biodiesel  is  blended  as  per  availability.  The  total  quantity  of biodiesel produced in financial year (FY) 2020-21 is 8 crore litres.

******