Lok Sabha Question No. 2878 (UNSTARRED), answered on 2016-03-15
Subject: Production of Ethanol
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: PRATIMA MONDAL, PREM DAS RAI, RAVINDRA KUSHAWAHA, VASANTHI M.

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 2878 TO BE ANSWERED ON 15 th  MARCH, 2016

## PRODUCTION OF ETHANOL

2878.

SHRIMATI PRATIMA MONDAL: SHRI PREM DAS RAI: SHRI RAVINDER KUSHAWAHA: SHRIMATI VASANTHI M.:

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 and if so, the details thereof indicating the cost of production of ethanol;
- (b) 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;
- (c) whether  the  Government  has  received  certain  complaints  against the operators of sugar industries 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;
- (d) whether  the  Sugar  Mills  have  represented  to  the  Government  to increase the utilisation of their molasses for production of Ethanol, if so, the details thereof and the response of the Government thereto; 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): 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 bioethanol to increasingly substitute petrol and diesel for transport and other applications. Under Ethanol Blending Programme  (EBP), the Central Government has scaled up blending targets from 5% to 10%  to promote blending  of  ethanol  with  petrol  and  its  use  as  alternative  fuel.  As  per industry sources, the production cost of ethanol produced through C-heavy route from molasses is Rs. 36.2 per litre.

(b): The  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  2012-13,  2013-14, 2014-15  and  the  current  year  as  received  from  industry  sources  are annexed. Estimate of demand and supply of ethanol by the end of 12 th  Five Year Plan i.e. for the year 2016-17 are not available.

(c): Representation has been received from the Chemical Industry against the  pricing  of  ethanol  for  Ethanol  Blended  Petrol  (EBP)  Programme. Presently the matter is sub-judice.

(d): No, Madam.

(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  LingoCellulosic  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.  With  a  view  to  augment supplies  of  ethanol  to  Oil  Marketing  Companies  (OMCs)  under  Ethanol Blending  Programme  (EBP),  policy  for  procurement  of  ethanol  has  been modified to smoothen the entire ethanol supply chain to provide remunerative  price  of  ethanol.  Further,  excise  duty  on  ethanol  has  been waived  off  for  supply  under  EBP  for  current  sugar  season  2015-16  and blending targets has also been scaled up from 5% to 10%.

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ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  THE UNSTARRED QUESTION NO. 2878 DUE FOR ANSWER  ON 15.3.2016 IN THE LOK SABHA

## All India Production of Alcohol/Ethanol

| Production of Alcohol/Ethanol (Crore liters)   | Production of Alcohol/Ethanol (Crore liters)   | Production of Alcohol/Ethanol (Crore liters)   | Production of Alcohol/Ethanol (Crore liters)   |
|------------------------------------------------|------------------------------------------------|------------------------------------------------|------------------------------------------------|
| 2015-16#                                       | 2014-15                                        | 2013-14                                        | 2012-13                                        |
| 290                                            | 306                                            | 272                                            | 294                                            |

# Figures for 2015-16 are estimated .

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