|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
Govt notifies new scheme for cooperative sugar mills to boost ethanol production
|
|
Monday, 17 March, 2025, 15 : 00 PM [IST]
|
|
Our Bureau, New Delhi
|
In a major step towards achieving 20% ethanol blending (E20) with petrol by 2025-26, the Central Government has notified a new scheme on March 6, 2025, aimed at converting sugarcane-based ethanol plants in Cooperative Sugar Mills into multi-feedstock-based ethanol plants. This move is expected to diversify ethanol production and accelerate the country’s transition to cleaner fuel alternatives.
The Ethanol Supply Year (ESY) 2023-24 saw a production of 672 crore litres of ethanol supplied to Oil Marketing Companies (OMCs) for blending with petrol. In the ongoing ESY 2024-25, approximately 261 crore litres has already been produced and supplied as of February 23, 2025. However, to meet the 20% blending target in ESY 2025-26, India will require an estimated 1016 crore litres of ethanol.
The Government has already achieved material compatibility for E20-fueled engines since April 2023 and has set a target for the rollout of E20-tuned vehicles from April 2025. While vehicles running on E20 fuel may experience a slight dip in fuel efficiency, the initiative is expected to significantly reduce dependency on fossil fuels and curb carbon emissions.
To encourage ethanol production, the Government has introduced several incentives, including Interest Subvention Schemes (2018-2022) to support ethanol plant setup, Reduction in GST on ethanol for the EBP Programme from 18% to 5%, Promotion of maize as a key feedstock for ethanol production and Long Term Offtake Agreements (LTOAs) by OMCs with Dedicated Ethanol Plants (DEPs).
Additionally, the Pradhan Mantri JI-VAN Yojana (Jaiv Indhan – Vatavaran Anukool Fasal Awashesh Nivaran) 2019, amended in 2024, has been notified to provide financial support for setting up advanced biofuel projects in India.
Announcing these measures in Lok Sabha, Union Minister of State for Consumer Affairs, Food, and Public Distribution, Nimuben Jayantibhai Bambhaniya, emphasized that diversifying ethanol production beyond sugarcane will be key to achieving the country’s green fuel goals.
With this multi-feed ethanol policy, India is moving closer to its vision of energy self-reliance, reduced fuel imports, and a sustainable biofuel economy.
|
|
|
|
|
|
|
|
|
|