Lok Sabha Question No. 2030 (UNSTARRED), answered on 2022-07-28
Subject: Increase in Ethanol production and blending
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Uday Pratap Singh

## LOK SABHA UNSTARRED QUESTION No. 2030 TO BE ANSWERED ON 28 th  July, 2022

## Increase in Ethanol production and blending

## †2030. SHRI UDAY PRATAP SINGH:

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 increase/promote ethanol production and obtain twenty per cent blending by 2025, if so, the details thereof, State/UTwise;
- (b)  whether  the  Government  proposes  to  set  up  new  distillery  for  1-G  ethanol production or expansion of existing distilleries afresh; and
- (c)  if so, the details thereof and the time by which it is likely to be completed?

## ANSWER

isVªksfy;e vkSj izkd`frd xSl ea=ky; esa jkT; ea=h ¼Jh jkes'oj rsyh½

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

(a):  Government  has  amended  the  National  Policy  on  Biofuels  -  2018  recently which inter-alia envisages  a  target  of  20%  ethanol  blending  by  2025-26.  This policy aims to promote biofuels across the country including ethanol production.

Government, since  2014,  has  taken  several  measures  to  increase  production  and utilization  of  ethanol  in  the  country  which  includes  permitting  procurement  of ethanol produced from other non-food feedstock besides molasses, like cellulosic and  lignocelluloses  materials  like  cotton  stalk,  wheat  straw,  rice  straw,  bagasse, bamboo  etc.  including  petrochemical  route,  subject  to  meeting  the  relevant  BIS standards; allowing use of sugarcane and food grains (maize and surplus stocks of rice with Food Corporation of India) for conversion to ethanol; administered price mechanism for  procurement  of  ethanol  under  the  Ethanol  Blended  Petrol  (EBP) Programme including enhanced ex-mill price of ethanol year on year from ethanol supply  year  2017-18;  lowered  GST  rate  to  5%  on  ethanol  for  EBP  Programme; amendment in Industries (Development & Regulation) Act for free movement of ethanol across states for blending; interest subvention scheme for enhancement and augmentation of ethanol production capacity in the country.

Oil Marketing Companies (OMCs) had floated an Expression of Interest (EoI) for signing long term offtake / bipartite agreement with upcoming dedicated ethanol plants  in  ethanol  deficit  states  for  supply  of  denatured  anhydrous  ethanol  in August, 2021 to meet the ethanol requirement for 20% blending.

Through this EoI, OMCs have signed long term offtake agreements (LTOA) with 131  shortlisted  Dedicated  Ethanol  Plant  proponents  in  various  states  which  is estimated to add a production capacity of approximately 757 crore litre per annum of ethanol in the next few years.

Government  has  also  notified  the  'Pradhan  Mantri  JI-VAN  (Jaiv  Indhan  Vatavaran  Anukool  fasal  awashesh  Nivaran)  Yojana'  for  providing  financial support  for  setting  up  Second  Generation  (2G)  ethanol  projects  in  the  country using lignocellulosic biomass and other renewable feedstock.

(b)  &  (c):  Government  itself  does  not  set  up  1-G  ethanol  distillery  but  has encouraged PSUs/companies/entrepreneurs/sugar mills/distilleries to set up ethanol plants or to expand their existing ethanol production capacities and has extended interest subvention for five years including one year moratorium period. Entrepreneurs from any part of the country willing to set up ethanol plants or to expand their existing ethanol production capacities can apply and avail the benefit of interest subvention.

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