Lok Sabha Question No. 229 (UNSTARRED), answered on 2016-04-25
Subject: Ethanol Blending
Ministry: PETROLEUM AND NATURAL GAS
Asked by: DUSHYANT CHAUTALA, RAMESH POKHRIYAL NISHANK

## LOK SABHA UNSTARRED QUESTION No. 229

## TO BE ANSWERED ON 25 th  APRIL, 2016

## ETHANOL BLENDING

## 229.   SHRI DUSHYANT CHAUTALA: DR. RAMESH POKHRIYAL "NISHANK':

isVªksfy;e vkSj izkd`frd xSl ea=h

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

- (a) whether ethanol blending level in the country is much lower as compared to other developing countries;
- (b) if so, the details thereof along with the permitted ratio of ethanol blending in petrol in the country and its effect on the cost of the petrol  after such mixing;
- (c) whether  the  blending  of  ethanol  helps  to  save  the  country's  foreign exchange and  reduce the oil import and if so, the details thereof;
- (d) whether the Government proposes to increase blending of ethanol in the near future and if so, the details thereof; and
- (e)   whether the Government has conducted/proposes to conduct any study to incentivise the sugarcane farmers in support of ethanol blending programme across the country and if so, the details and the findings thereof and follow up action taken thereon?

## ANSWER

isVªksfy;e vkSj izkd`frd xSl ea=ky; esa jkT; ea=h ¼Lora= izHkkj½ ¼Jh /kesZUnz iz/kku½

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS  (INDEPENDENT CHARGE) (SHRI DHARMENDRA PRADHAN)

(a)  & (b):  In India, the Government has permitted  Oil Marketing Companies (OMCs) to sell Ethanol blended petrol with percentage of ethanol up to 10% as per BIS Specification to achieve 5% ethanol blending across the country as a whole.    During  the  sugar  year  2014-15,  OMCs  have  achieved  a  blending percentage of 2.3 per cent.

The  Government  has  fixed  the  price  of  ethanol.  As  petrol  has  been decontrolled  with  effect  from  June,  2010  OMCs  take  appropriate  decision  on pricing of petrol as per international prices and market conditions.

(c):  Ethanol  blending  in  Petrol  results  in  saving  of  Petrol  to  the  extent  of  its blending and consequent foreign exchange.

The  potential  foreign  exchange  earnings  for  the  Sugar  Year  2014-15 amounts to around USD 285 Million.

(d) & (e) : In order to improve the availability of ethanol and encourage ethanol blending, the Government has taken following steps :

- (i) The Government has fixed the delivered price of ethanol in the range of Rs.48.50 per litre to 49.50 per litre.
- (ii)   Ethanol  produced  from  other  non-food  feedstocks  besides  molasses,  like cellulosic  and  ligno  cellulosic  materials  including  petrochemical  route, have been allowed to be procured.
- (iii)  Ministry of Petroleum and Natural Gas, on 1 st September, 2015, inter-alia has asked OMCs to target ten percent blending of ethanol in Petrol in as many States as possible.
- (iv)  The  procedure  of  procurement  of  ethanol  under  the  EBP  has  been simplified to streamline the entire ethanol supply chain.
- (v)    Excise  duty  has  been  waived  on  ethanol  supplies  to  OMCs  for  EBP  by sugar mills during 2015-16.

Above initiatives to incentivize Ethanol Blended Petrol (EBP) Programme are expected to increase blending of ethanol in the near future.

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