Lok Sabha Question No. 626 (UNSTARRED), answered on 2024-07-25
Subject: Inviting Bids for Supply of Ethanol
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri  Selvaganapathi T.M.

## LOK SABHA UNSTARRED QUESTION No. 626

TO BE ANSWERED ON 25 th  July, 2024

## INVITING BIDS FOR SUPPLY OF ETHANOL

## 626.  SHRI SELVAGANAPATHI T. M. :

## पेᮝोिलयम और ᮧाकृितक गैस मंᮢी

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

- (a) whether the Oil Marketing Companies (OMCs) have invited bids for the supply of ethanol for the year 2023-24 which ends on October 31, 2024 and if so, the details thereof;
- (b)  whether  the  suppliers  from  sugar  sector  can  supply  any  quantity  of  ethanol  they  produce  and  there would be no more restrictions and if so, the details thereof;
- (c) whether it is true that ethanol from sugar sector is more compatible with crude oil and if so, the details thereof; and
- (d) whether the OMCs have any plan to establish units for producing ethanol and if so, the details thereof?

## ANSWER

## पेᮝोिलयम और ᮧाकृितक गैस मंᮢालय मᱶ रा᭔य मंᮢी (᮰ी सुरेश गोपी)

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI SURESH GOPI)

(a): For the current Ethanol Supply Year (ESY) 2023-24 i.e., 1st November, 2023 to 31st October, 2024, Oil  Marketing  Companies  (OMCs)  have  so  far  floated  four  bidding  cycles  for  procurement  of  ethanol during November'2023, January, March, and May'2024.

- (b): The  Government  has  been  encouraging  sugar  mills  to  divert  excess  sugar  for  increased  ethanol production. However, due to anticipated drop in sugar production in the current Sugar Season 2023-24, and to  ensure  sufficient  availability  of  sugar  for  human  consumption  without  major  price  fluctuation  in  the domestic  market,  Government  has  presently  restricted  the  diversion  of  sugar  for  ethanol  production  to 24.12 LMT in current ESY 2023-24 .
- (c):  Ethanol  produced  from  any  feedstock  meeting  Bureau  of  Indian  Standards  (BIS)  specification  IS 15464:2022 of denatured anhydrous ethanol  is  compatible  for  blending  with Petrol  as  per  relevant  BIS Standards.

(d):  Government  has  notified  Pradhan  Mantri  JI-VAN  (Jaiv  Indhan-Vatavaran  Anukool  fasal  awashesh Nivaran)  Yojana  for promoting  Second  Generation  (2G)  ethanol production from  cellulosic  and lignocellulosic  biomass  including  petrochemical  route  in  the  country  by  providing  financial  support  for setting up 2G ethanol bio-refineries.

Under this scheme, commercial Second Generation (2G) bio-ethanol projects has been set up by Indian Oil Corporation Ltd. (IOCL) at Panipat (Haryana) and are being set up by Hindustan Petroleum Corporation Ltd.  (HPCL)  at  Bhatinda  (Punjab),  Bharat  Petroleum  Corporation  Ltd.  (BPCL)  at  Bargarh  (Odisha), Numaligarh  Refinery  Ltd.  at  Numaligarh  (Assam)  and  Mangalore  Refinery  and  Petrochemicals  Ltd.  at Davangere (Karnataka).

The  commercial  projects  at  Bathinda,  Bargarh  and  Numaligarh  are  in  advanced  stages  of  construction. IOCL has also set up Third  Generation  ethanol  plant  at  Panipat,  Haryana.  HPCL  already  has  two  First Generation ethanol plants at Sugauli and Lauriya in Bihar. BPCL is setting up First Generation ethanol plant at Bargarh, Odisha.

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