Lok Sabha Question No. 151 (STARRED), answered on 2024-08-01
Subject: Agricultural Waste for Ethanol Production
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Darshan Singh Choudhary

## LOK SABHA STARRED QUESTION No. *151

TO BE ANSWERED ON 1 st  August, 2024

## AGRICULTURAL WASTE FOR ETHANOL PRODUCTION

## †*151.  SHRI DARSHAN SINGH CHOUDHARY:

पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢी

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

- (a)  whether  the  Government  proposes  to  set  up  ethanol  production  plants  in Narmadapuram  Parliamentary  Constituency  as  sugarcane,  paddy,  wheat  and green gram (moong) are produced there in large quantity;
- (b)  if  so,  whether any action-plan has been formulated for the said purpose and if so, the details thereof;
- (c)  whether the Compressed Bio-Gas (CBG) plants are proposed to be set up by the Government and Public Sector Undertakings of petroleum sector to make use of agriculture  waste  in  Madhya  Pradesh,  particularly  in  the  said  Parliamentary Constituency; and
- (d) if so, the details thereof?

## ANSWER

पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢी ( ᮰ी हरदीप ᳲसह पुरी )

## MINISTER OF PETROLEUM & NATURAL GAS (SHRI HARDEEP SINGH PURI)

(a) to (d): A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PART (a) TO (d) OF THE LOK  SABHA  STARRED  QUESTION  NO.  *151  TO  BE  ANSWERED  ON 01.08.2024  REGARDING  'AGRICULTURAL  WASTE  FOR  ETHANOL PRODUCTION'

(a) & (b): The Government has been promoting blending of ethanol in petrol under the  Ethanol  Blended  Petrol  (EBP)  Programme.  Under  this  Programme,  Public Sector Oil Marketing Companies sell petrol blended with ethanol. The Government, since 2014, has taken several measures to meet the ethanol blending targets which includes  expansion  of  feedstock  for  production  of  ethanol,  administered  price mechanism for procurement of ethanol under the EBP Programme,  lowered GST rate  to  5%  on  ethanol  for  EBP  Programme,  interest  subvention  scheme  for enhancement and augmentation of ethanol production capacity in the country etc. This has resulted in increase of blending of ethanol with petrol from 38 crore litres in ESY 2013-14 to more than 500 crore litres in ESY 2022-23 with corresponding increase  in  blending  percentage  from  1.53%  to  12.06%.  OMCs  had  achieved  the target of 10% ethanol blending in petrol in June, 2022 i.e., five months ahead of the target during Ethanol Supply Year (ESY) 2021-22. During the current ESY 202324, the blending percentage has already crossed 13%.

Further,  the  National  Policy  on  Biofuels  -  2018,  as  amended  in  2022, inter-alia advanced the target of 20% blending of ethanol in petrol to ESY 2025-26 from 2030 and allowed multiple feedstock for production of ethanol. The Roadmap for Ethanol Blending in India 2020-25, prepared by an inter-Ministerial Committee, estimated ethanol  requirement  of  1016  crore  litres  to  achieve  20%  blending  target  in  ESY 2025-26 against which ethanol production capacity of 1528 crore litres is available across  the  country.  In  order  to  achieve  the  blending  targets  set  under  EBP Programme,  OMCs  have  signed  Long  Term  Offtake  Agreements  (LTOAs)  with Dedicated Ethanol Plants (DEPs). Also, Government has, during 2018-22, introduced various Ethanol Interest Subvention Schemes  (EISS)  for ethanol production from molasses as well as grains to encourage entrepreneurs/companies/co-operative societies etc., to set up ethanol plant depending upon the techno-economic viability of the project as per their investment plans.

Interest  subvention  has  been  approved  in  principle  for  five  ethanol  projects  in Narmadapuram Parliamentary Constituency, details of which are as follows:

|   S.No. | Name of Ethanol Projects                    |
|---------|---------------------------------------------|
|       1 | Narmada Sugars Private Limited              |
|       2 | Shakti Sugar Mill Private Limited           |
|       3 | Vanshika Sugar And Power Industries Limited |
|       4 | Narmada Sugar Private Limited               |
|       5 | K P Biofuels Private Limited                |

(c) & (d): Under Sustainable Alternative towards Affordable Transportation (SATAT)  initiative,  Compressed  Bio  Gas  (CBG)  plants  are  set  up  across  the country, including Madhya Pradesh, based on the techno-commercial feasibility and feed  stock  availability.  Oil  and  Gas  Marketing  Companies  (OGMCs)  viz.  IOCL, HPCL,  BPCL,  GAIL,  and  IGL  invite  expression  of  interest  (EOI)  from  the entrepreneurs  for  procurement  of  CBG  for  further  marketing.  At  present,  4  CBG plants  in  Madhya  Pradesh  have  been  commissioned  and  2  plants  are  under construction.  Currently,  no  proposal  to  set  up  CBG  plants  in  the  parliamentary constituency of Narmadapuram is under consideration of Government or the Public Sector Undertakings of Petroleum sector.

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