This article sheds light on Ethanol Blended Petrol Programme and focuses on its objective of achieving a 20% ethanol blend in petrol by 2025-26. This target is referred to as E20 (20% ethanol blending with petrol) by 2025.
Progress Towards Ethanol Blending Targets
- Current Status: Ethanol blending has increased from 8% in 2021 to 13-15% as of now.
- Production Capacity: India’s ethanol production capacity has reached 1,380 crore litres, nearly meeting the 2025-26 target.
About Ethanol Blending Programme
- Launch Date: The Ethanol Blending Programme started in January 2003.
- Objective: To promote the use of ethanol as an alternative fuel to conventional petrol.
- Key Features:
- Blending Targets: The initial target was to achieve 5% ethanol blending, which has been progressively increased. The current target is to achieve 20% ethanol blending (E20) by 2025-26.
- Policy Support: The government has introduced various policies and incentives to promote ethanol production, including interest subvention for setting up distilleries and reducing Goods & Services Tax (GST) on ethanol2.
- Raw Materials: Ethanol can be produced from multiple feedstocks, including sugarcane juice, molasses, damaged food grains, and agricultural residues2.
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Benefits of Ethanol Blending
- Cleaner Fuel: Ethanol burns cleaner than petrol, reducing greenhouse gasses and helping fight climate change.
- Sustainable Fuel: Ethanol is made from renewable materials such as sugarcane and corn, making it a more sustainable choice than fossil fuels.
- Boost for Farmers: Producing ethanol offers extra income for farmers who grow crops like sugarcane, supporting rural communities.
- Employment Opportunities: New ethanol production plants and infrastructure create jobs in rural and semi-urban areas.
- Higher Octane: Ethanol has a higher octane rating than petrol, which can enhance engine performance and efficiency.
- Reduced Oil Dependency: Adding ethanol to the energy mix helps reduce risks from fluctuating oil prices and supply issues.
Key Challenges of Ethanol Blending
- Food vs. Fuel Debate:
- Maize Imports: Increased imports of maize have been noted due to its use in ethanol production.
- Food Security: Concerns about food security arise as maize and other grains are used for ethanol, but experts assure there are sufficient surpluses.
- Production Capacity Issues:
- Infrastructure: Capacity needs to expand significantly, especially for grain-based distilleries.
- Sugarcane Impact: Expanding sugarcane production requires large amounts of water, affecting sustainability.
- Economic and Environmental Concerns:
- Maize Prices: Increased demand for maize for ethanol could raise prices and affect its major uses like poultry feed.
- Water Use: Higher water use for sugarcane cultivation may affect other crops and overall agricultural sustainability.
- State-Level Variations:
- Uttar Pradesh: Major contributor to ethanol production, with a significant portion coming from sugarcane.
- Tamil Nadu: Less focus on ethanol due to its lucrative liquor market and water use concerns.
- Maharashtra: Prefers producing ethanol for other uses, such as industrial applications, due to higher profitability.
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About Ethanol
- Ethanol is anhydrous ethyl alcohol with the chemical formula C₂H₅OH.
- Sources: It can be made from plants with high starch content, such as sugarcane, maize, and wheat.
- Production in India: In India, ethanol is primarily produced from sugarcane molasses through fermentation.
- Other sources for producing ethanol are corn, rice, and barley.
Benefits of Ethanol
- Environmental Impact:
- Fewer Emissions: Ethanol helps engines burn fuel more completely, which reduces emissions and pollution.
- Renewable Resource: Since ethanol is made from plants, it is considered a renewable fuel.
- Steps taken by the Government to Boost Ethanol Blending
- Differential Ethanol Pricing: This strategy aims to incentivise the ethanol production from various sources such as sugarcane juice, B heavy molasses, c-heavy molasses.
- Interest Subvention Scheme: It is a government initiative that aims to offer relief by providing subsidized interest rates on loans.
- It helps farmers from exploitative lending practices and enables them to invest in agricultural activities, thereby increasing productivity.
- Regulatory amendments: Government allowed free movement of ethanol across various regions of India by doing amendments in the Industries (Development & Regulation) Act.
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August 21, 2024
