Lok Sabha Question No. 5 (STARRED), answered on 2016-07-18
Subject: Blending of Ethanol
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SHARAD TRIPATHI, RAJU ALIAS DEVAPPA ANNA SHETTI

## LOK SABHA STARRED QUESTION No. 5 TO BE ANSWERED ON 18 TH  JULY, 2016

## BLENDING OF ETHANOL

## *5. SHRI SHARAD TRIPATHI: SHRI RAJU SHETTY:

## isVªksfy;e vkSj izkd`frd xSl ea=h

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

- (a) the  mechanism  and    norms/criteria  laid  down  by  the  Government  to implement ethanol blending programme in the country;
- (b) the  progress  made  by  each  Oil  Marketing  Company,  company-wise  to adhere to the norms prescribed for the purpose;
- (c) whether the  Government proposes to increase the  ratio of  blending of ethanol in petrol in the near future and if so, the details thereof;
- (d) whether consultations have been held with various stakeholders in this regard and if so, the details thereof along with the response thereto and the follow-up action taken by the Government thereon; and
- (e) the foreign exchange likely to be saved as a result thereof?

## 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) to (e) :  A statement is laid on the Table of the House.

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PART  (a)  TO  (e)  OF THE LOK SABHA STARRED QUESTION NO. 5 TO BE ANSWERED ON  18.07.2016  REGARDING  BLENDING  OF  ETHANOL  BY  SHRI SHARAD TRIPATHI AND SHRI RAJU SHETTY

(a) & (b) :  In India, the Government has permitted Oil Marketing Companies (OMCs) to sell Ethanol Blended Petrol (EBP) with percentage of ethanol up to 10%  as  per  BIS  Specification  to  achieve  5%  ethanol  blending  across  the country as a whole.  Further in July 2013, the Government decided that OMCs will  procure  ethanol  only  from  domestic  sources  (produced  from  molasses route only) to achieve the mandatory requirement of 5% ethanol blending in areas/parts of the country where sufficient quantity of ethanol is available.   In other parts of the country, blending of ethanol may be increased progressively depending upon the availability of ethanol to reach the 5% mandatory level.

In  order  to  improve  the  availability  of  ethanol,  the  Government  on 10.12.2014 has, inter-alia, decided to fix the delivered price of ethanol in the range of Rs.48.50 per litre to 49.50 per litre.  Further, ethanol produced from other non-food feedstocks besides molasses, like cellulosic and ligno cellulosic materials including petrochemical route, has also been allowed to be procured subject to meeting the relevant BIS Standards.

Accordingly,  OMCs  are  implementing  Ethanol  Blended  Petrol  (EBP) Programme  in  notified  States  and  Union  Territories  as  per  availability  of ethanol.    Details  regarding  ethanol  supplied  to  OMCs  during  the  last  three sugar years is as under :

Quantity blended in crore litres

| Sugar Year   |   IOCL |   BPCL |   HPCL |   Total |   %age of blending achieved |
|--------------|--------|--------|--------|---------|-----------------------------|
| 2012-13      |    6   |    4.5 |    4.9 |    15.4 |                        0.67 |
| 2013-14      |   17.4 |    9.3 |   11.3 |    38   |                        1.53 |
| 2014-15      |   31.1 |   15.4 |   20.9 |    67.4 |                        2.33 |

During the current sugar year, a quantity of 129.75 crore litres of ethanol has been contracted by OMCs.

(c) : In September, 2015, Ministry of Petroleum and Natural Gas has asked OMCs to target ten per cent blending of ethanol in petrol in as many States as possible.

(d)  :    The  Government  has  been  holding  regular  consultations  with  relevant stakeholders  like  OMCs,  Indian  Sugar  Mills  Association  (ISMA),  State

Governments  and  Union  Ministries  to  take  forward  the  EBP  Programme. Following steps have been taken in this direction :

- (i) A Steering Committee has been constituted in Ministry of Petroleum and Natural Gas for regular consultations and monitoring.
- (ii) Ministry of Petroleum and Natural Gas has been regularly taking up the matter with State Governments to address State specific issues relating to taxation, excise permits, import/export permits, storage license, etc.
- (iii) Nodal  Officers  from  OMC's  have  also  been  appointed  for  different States for coordination among OMCs, Sugar Mills and other stakeholders for effective implementation of EBP programme.

(e) : Ethanol blending in Petrol results in saving of Petrol to the extent of its blending  and  consequent  foreign  exchange.  The  potential  foreign  exchange savings for the Sugar Year 2014-15 amount to around USD 285 Million.

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