Lok Sabha Question No. 691 (UNSTARRED), answered on 2022-07-21
Subject: Promotion of Bio-fuels
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Manoj Kishorbhai Kotak

## LOK SABHA UNSTARRED QUESTION No. 691 TO BE ANSWERED ON 21 st  July, 2022

## Promotion of Bio-fuels

## 691. SHRI MANOJ KOTAK:

## isVªksfy;e vkSj izkd`frd xSl ea=h

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

[

- (a)  whether the Government is promoting biofuels with the broader objectives of reducing import dependency in the country and if so, the details thereof;
- (b)  whether  the  Government  is  working  towards  achieving  target  of  ethanol blended petrol as mentioned in the Biofuel Policy, 2018, and if so the details thereof;
- (c)  whether  the  Government  is  providing  financial  support  to  integrated  bioethanol  projects  for  setting  up  second  generation  ethanol  projects  in  the country, if so, the details thereof; and
- (d)  the details of the target achieved for reducing import dependency in the country along with the foreign currency saved during the last three years, year-wise?

## 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)  &  (b):  For  biofuels,  the  Government  is  implementing  the  Ethanol  Blended Petrol (EBP) Programme and Sustainable Alternative Towards Affordable Transportation  (SATAT)  with  the  broader  objectives  of  promoting  domestic agriculture sector, ensuring environmental sustainability, reducing import dependency and saving foreign exchange.

Government had earlier notified the National Policy on Biofuels - 2018 which laid down indicative target of 20% blending of ethanol in petrol and 5% blending of biodiesel  in  diesel  by  2030  in  the  country.  Government  has  now  amended  the National Policy on Biofuels - 2018 which has advanced the ethanol blending target of 20% blending of ethanol in petrol to ESY 2025-26 from 2030. For the ongoing Ethanol  Supply  Year  (ESY  2021-22),  Oil  Marketing  Companies  (OMCs)  have already achieved 10.16% blending as on 10 th July, 2022.

With a view to promoting 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 have been inviting Expression  of  Interest  (EoI)  from  potential  entrepreneurs  to  produce  CBG.  Till 28.2.2022,  Oil  PSUs  have  released  Letter  of  Intent  (LoIs)  for  establishment  of 3160 CBG plants for procurement of CBG.

Used  Cooking  Oil  (UCO)  has  been  identified  as  a  potential  raw  material  for biodiesel production and public sector OMCs have floated EoIs for procurement of Biodiesel produced from UCO across 300 locations. OMCs have received offers for setting up 61 plants with a production capacity of approximately 36 crore litres per annum for manufacturing Biodiesel from UCO.

- (c): In March, 2019, Government has notified the 'Pradhan Mantri JI-VAN (Jaiv Indhan  -  Vatavaran  Anukool  fasal  awashesh  Nivaran)  Yojana'  for  providing financial support to integrated bio-ethanol projects for setting up Second Generation (2G) 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.    Under  the  PM  JI-VAN  Yojana,  the maximum financial assistance of Rs. 150 crore per project for commercial projects and Rs. 15 crore per project for demonstration projects has been prescribed.
- (d):  Under  the  EBP  programme,  the  Government  has  already  achieved  the intermediate target of 10% average blending in the country in June, 2022 ahead of the target date of November, 2022.

The details of estimated foreign currency (in Rs.)  saving during last three Ethanol Supply Year are as follows:

| Ethanol Supply Year (1 st December - 30 th November)   | Total Saving (Rs. Cr.)   |
|--------------------------------------------------------|--------------------------|
| 2018-19                                                | 4145.27                  |
| 2019-20                                                |                          |
| 2020-21                                                | 3697.02 10605.98         |
| Total                                                  |                          |

Source: Petroleum Planning and Analysis Cell (PPAC)

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18448.27