Lok Sabha Question No. 2406 (UNSTARRED), answered on 2015-08-04
Subject: Production of Ethanol
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: R.P. MARUTHARAJAA

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 2406 TO BE ANSWERED ON 04 TH  AUGUST, 2015

## Production of Ethanol

## 2406. SHRI R.P. MARUTHARAJAA:

Will  the  Minister  of  CONSUMER  AFFAIRS,  FOOD  AND  PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether the Government proposes to promote use of ethanol as an alternative fuel in the country;
- (b) if so, the details thereof including the cost of production of ethanol;
- (c)  the  quantity  of  ethanol  produced  in  the  country  during  the  last  three years and the current year and the projected demand and supply of ethanol by the end of the 12th Five Year Plan;
- (d) whether  the  Government  has  received  any  complaints  against  the operators  of  sugar  mills  and  oil  marketing  companies  relating  to  the pricing  of  ethanol  blended  petrol  and  if  so,  the  details  thereof  and  the action taken by the Government in this regard; and
- (e) the  measures taken by the Government to augment production and use of ethanol in the country?

## A N S W E R

## MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI RAM  VILAS PASWAN)

(a)  &  (b):  Yes,  Madam.  The  National  Policy  on  bio-fuels,  announced  in December,  2009  aims  at  bringing  about  accelerated  development  and promotion  of  the  cultivation,  production  and  use  of  bio-fuels  including bio-ethanol to increasingly substitute petrol and diesel for transport and other  applications.   As  per  Industry  sources,  the  production  cost  of ethanol produced through C-heavy route from molasses is Rs. 39.85 per litre.

(c): Production of ethanol is linked to the production of molasses which is a by-product during production of sugar. The details of alcohol/ethanol manufactured from molasses during 2011-12, 2012-13, 2013-14 and the current year, as received from industry sources, are annexed. Estimates of demand and supply of ethanol by the end of 12th Five Year Plan i.e. for the year 2016-17, are not available.

(d): Representations  have  been  received  from  the  Chemical  Industry against the pricing of ethanol for Ethanol Blended Petrol (EBP) programme. Presently, the matter is sub-judice.

(e): The Government is promoting various Research and Development (R&D)  programmes  for  developing  bio-fuel  technologies,  particularly second generation bio-fuel  technologies  for  production  of  ethanol  from lingo-cellulosic materials. With a view to increase production of ethanol, the Government is also providing soft loans of up to 40% of the project cost to the sugar mills for setting up ethanol projects. Besides, policy for procurement  of  ethanol  under  the  Ethanol  Blending  Programme  (EBP) has been modified to smoothen the entire ethanol supply chain and to provide remunerative price of ethanol. It has also been decided to waive central  excise  duty  on  ethanol  supplied  to  Oil  Marketing  Companies (OMCs) by sugar mills for EBP for the ensuing 2015-16 sugar season.

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## ANNEXURE

ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE UNSTARRED QUESTION NO.  2406 DUE FOR ANSWER ON 04.08.2015 IN THE LOK SABHA

All India production of Molasses and Ethanol

| Production of Molasses (Lakh tones)   | Production of Molasses (Lakh tones)   | Production of Molasses (Lakh tones)   | Production of Molasses (Lakh tones)   | Production of Molasses (Lakh tones)   | Production of alcohol/ethanol (million litres)   | Production of alcohol/ethanol (million litres)   | Production of alcohol/ethanol (million litres)   | Production of alcohol/ethanol (million litres)   |
|---------------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
| Year                                  | 2014-15#                              | 2013-14                               | 2012-13                               | 2011-12                               | 2014-15#                                         | 2013-14                                          | 2012-13                                          | 2011-12                                          |
| Production                            | 122.30                                | 108.81                                | 117.44                                | 118.24                                | 3057.50                                          | 2720.25                                          | 2936.00                                          | 2956.00                                          |

# figures for 2014-15 are estimated.

- Production of alcohol/ethanol has been calculated at the standard of 250 litres per tonne.

Molasses production is based on Final Manufacturing Report of Sugar Mills which is a statutory document.

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