Lok Sabha Question No. 3977 (UNSTARRED), answered on 2024-12-19
Subject: Growth of Bio-Energy Sector
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Balabhadra Majhi, Dr. Bhola Singh, Shri Manoj Tiwari, Shri Mukeshkumar Chandrakaant Dalal, Shri Mukesh Rajput

## LOK SABHA UNSTARRED QUESTION No. 3977

TO BE ANSWERED ON 19 th December, 2024

## GROWTH OF BIO-ENERGY SECTOR

## 3977. SHRI MUKESHKUMAR CHANDRAKAANT DALAL:

DR. BHOLA SINGH:

SHRI MANOJ TIWARI:

SHRI BALABHADRA MAJHI:

SHRI MUKESH RAJPUT:

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢी

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

- (a)  the policies and incentives provided by the Government to further accelerate the growth of the bio-energy sector, particularly the targets set for 2025 with regard to the ethanol blending;
- (b) the measures taken by the Government to engage and educate farmers and local communities  about  the  benefits  of  transitioning  to  bio-energy  along  with  the extent to which such participation would be facilitated in this transformation;
- (c)  the aims and objectives of the scheme being formulated by the Government to enact a new legislation in respect of offshore oil exploration;
- (d) the manner in which this new legislation is likely to affect such sectors which were previously designated as no-go zones for oil exploration;
- (e)  whether  the  Government  has  any  strategy  to  promote  second-generation  (2G) Bioethanol plants and advanced biofuels and if so, the details thereof; and
- (f)  the role  of  bioenergy  in  meeting  India's  climate  commitments under the Paris Agreement?

## ANSWER

पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢालय मᱶ रा᭔य मंᮢी ( ᮰ी सुरेश गोपी )

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

(a) Government has notified the National Bioenergy Programme (NBP) with an aim to promote the use of bioenergy and waste-to-energy technologies to support clean energy solutions to enhance energy security and support sustainable development in India. In addition, to accelerate the growth of the biofuels sector and achieve the enhanced ethanol blending by 2025, the Government, since 2014, has taken  several  measures  which inter-alia includes  expansion  of  feedstock  for production of ethanol, administered price mechanism for procurement of sugarcane based  ethanol  under the  Ethanol  Blended  Petrol  (EBP)  Programme, lowered GST rate to 5% on ethanol for EBP Programme, introduction  of various Ethanol Interest Subvention Schemes (EISS), during 2018-22, for ethanol production from molasses as well as grains and Long Term Offtake Agreements (LTOAs) by Oil Marketing Companies (OMCs) with Dedicated Ethanol Plants (DEPs) etc., Notification of the 'Pradhan  Mantri  JI-VAN  (Jaiv  Indhan  -  Vatavaran  Anukool  fasal  awashesh Nivaran) Yojana' to provide financial support for integrated bio-ethanol projects for setting up Advanced Biofuels projects in the country using lignocellulosic biomass and other renewable feedstock.

(b): To  promote  the  production  of  maize  as  a  major  feedstock  for  grain  based ethanol  supply  under  Ethanol  Blended  Petrol  Programme,  training/awareness/ exposure  programme  have  been  conducted  by  Indian  Council  of  Agricultural Research  (ICAR)-  Indian  Institute  of  Maize  Research  (IIMR)  under  its  project 'Enhancement of Maize Production in Catchment Area of Ethanol Industries'  for various stakeholders including farmers across the country for quality maize production towards profitable ethanol production. The management of fall armyworm and aflatoxin was integral part in such programmes conducted under this project along with mechanization and best weed and nutrient management. A total of  788  demonstrations  of  improved  package  of  practices  were  conducted  during Kharif 2024  in  15  clusters  across  15  States.  In Rabi 2024-25,  the  inputs  were distributed  to  conduct  demonstrations  of  improved  practices  on  720  acres  in  the catchment area of ethanol industries. Specialized training for the distillers and seed production organization were also conducted.

(c) &  (d): The Government has introduced the Oilfields (Regulation and Development)  Amendment  Bill,  2024, with the aim of increasing domestic production  of  oil  and  gas  and  thereby  reducing  the  country's  import  dependence. The bill targets various objectives, including attracting investments in the Exploration and Production sector to bring in necessary capital and technology for expediting  petroleum  operations  in  the  country.  It  seeks  to  create  an  investorfriendly  environment  that  promotes  ease  of  doing  business,  fosters  prospects  for exploration,  development,  and  production  of  all  types  of  hydrocarbons,  ensures stability, and provides adequate opportunities for risk mitigation.

The initiatives taken by the Government have resulted in a significant reduction in the "No-Go" area, located off the coast of India in the Bay of Bengal, the Indian

Ocean,  and  the  Arabian  Sea,  from  1,366,708  square  kilometers  (SKM)  to  24,832 SKM, thereby opening up approximately 99% of the previously restricted areas for exploration  activities.  The  enactment  of  the  proposed  legislation  is  expected  to unlock valuable mineral oil resources, attract investments, facilitate the development and  production  of  all  types  of  hydrocarbons,  and  enable  exploration  of  various unapprised  and  unexplored  oilfields in the country, including blocks  in the previously designated "No-Go" areas.

(e) The  Government  had  notified  the  'Pradhan  Mantri  JI-VAN  (Jaiv  Indhan  Vatavaran Anukool Fasal Awashesh Nivaran) Yojana' in 2019, amended in 2024, to provide  financial  support  for  integrated  bio-ethanol  projects  aimed  at  setting  up advanced  biofuel  projects  in  the  country  using  lignocellulosic  biomass  and  other renewable  feedstock.  Under  this  scheme,  financial  assistance  of  more  than  ₹908 crore  has  been  approved  for  Public  and  Private  Sector  Oil  Marketing  Companies (OMCs) for six commercial-scale Second Generation (2G) bio-ethanol projects and four demonstration-scale 2G ethanol projects. Among these, the commercial project in Panipat, Haryana, has been dedicated to the Nation, while three other commercial-scale projects are in advanced stages of construction.

(f) Over the last 10 years, ethanol blending in petrol by Public Sector OMCs has helped reduce approximately 557 lakh metric tonnes of CO2 emissions.

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