Lok Sabha Question No. 2764 (UNSTARRED), answered on 2023-12-20
Subject: Ethanol Production Capacity
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Keshari Devi Patel

## GOVERNMENT OF INDIA

## INISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO.2764

## TO BE ANSWERED ON 20TH DECEMBERI 2023

## ETHANOL PRODUCTION CAPACITY

## 12764.  SHRIMATI KESHARI DEVI PATEL:

Will the Minister of CONSUMER  AFFAIRS, FOOD  AND PUBLIC DiSTRIBUTION wvfFcm wr&, vrv dR tiT#rf+qfq?wr tHt be pleased to state,

- (a) the present ethanol production capacity in the country including its sources;
- (b) whether the Government has estimated its demand based on the increasing number of vehicles in the country and if so, the details thereof;
- (c) whether the Government has formulated any plan for  its  expansion within the country; and
- (d) if so, the details thereof along with the target set in this regard?

ANSWER INISTER OF STATE FOR MINISTRY OF RURAL DEVELOPMENT AND CONSUMER AFFAIRS! FOOD & PUBLIC DISTRIBUTION (SADHVI NIRANJAN JYOTI)

- (a):  As on 30.11.2023, the ethanol production capacity in  the country is about  1380  crore  litres out  of  which about  875  crore  litres is  molasses based and about 505 crore  litres  is grain  based.
- (b) to (d): The Government of  India has  been implementing Ethanol Blended with  Petrol (EBP) Programme throughout the country wherein Oil Marketing Companies (OMCs) sell  petrol blended with  ethanol.  Under EBP Programme, Government has fixed the target of 2D% blending of ethanol with  petrol by 2025.

In order to achieve the target  of 20% blending by 2025, about 'l016 crore litres of  ethanol is  required and total  requIrement of ethanol including for other uses is 1350 crore litres. For this, about 1700 crore liters  of ethanol producing capacity is  required to  be in  place by 2025 consIdering plant operates at  80'/, efficiency. The Government has estimated the demand of ethanol required for  20% blending by 2025 keeping in view the growth of petrol based vehicles in two-wheeler and passenger vehicle segments& the projected sale of Motor Spirit (MS).

Further, with  a view to enhance the ethanol production capacity in the country to  achieve the  blending targets  set  under EBP Programme, the Government has notified  various ethanol interest  subvention schemes from July 2018 to April 2022.

Under these  ethanol  interest  subvention schemes, Government is facilitating entrepreneurs to set up new distilleries (molasses based, grainbased and dual-feed based) or  expansion of  existing  distilleries  (molasses based, grain-based and  dual-feed based) throughout  the  country.  Interest subvention @ 6% per annum or  50% of  rate of  interest charged by banks/financial institutions,  whIchever is  lower, on the loans to  be extended by banks/financial Institutions  is  being borne by the  Central Government  for five years including one-year moratorium.

Installation of new ethanol distilleries/expansion of existing ethanol distilleries has brought investment opportunities worth over ? 40,000/- crore in urban as well  as rural areas,

Due to effective Government poIIcies, the supply of ethanol to Oil Marketing Companies (OMCs) has increased by more than 13 times to  about 502 crore litres  in Ethanol Supply Year(ESY) 2022-23 from 38 crore  litres  in ESY 2013-14. The blending  percentage has  also  increased from  1.53% in  ESY 2013-14 to targeted  12% in  ESY 2022-23n

Through the sale of ethanol, the cash flows for sugar mills have improved resulting in  prompt payment to  cane farmers. Sugar mills have cleared 98.3% of  cane dues of  farmers  in  Sugar Season (SS) 2022-23 and 99.9% of cane dues in previous SS 2021-22.

In  last  10 years, sugar mills  have earned revenue of  more than ? 94,000 crores from sale of ethanol which has added to the bottom line of sugar mills.

Production of ethanol  has led to proportionate reduction in the import of petrol or crude oil which has resulted in saving of foreign exchange for India. In 2022-23, with production of about 502 crore litres of ethanol, India has saved about ? 24,300 crores of foreign exchange and improved India's energy security.

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