Ethanol blending has saved US$ 11.80 billion (Rs. 99,000 crore) forex since 2014, says Minister for Petroleum & Natural Gas Mr. Hardeep Singh Puri

India's ethanol blending program has saved US$ 11.80 billion (Rs. 99,000 crore) in foreign exchange since 2014, as Minister for Petroleum & Natural Gas Mr. Hardeep Singh Puri highlighted. The government has achieved a 15% ethanol blending target so far, with plans to increase this to 20% by Ethanol Supply Year (ESY) 2025-26. Speaking at the International Conference on Bioenergy, he noted that the increased use of ethanol in automotive fuels has allowed the country to substitute 17.3 million metric tonnes of crude since 2014, significantly reducing the need for imports. Additionally, carbon emissions have been lowered by 51.9 million metric tonnes over the past decade. Cumulative payments made to distillers by oil marketing companies since 2014 amount to US$ 17.29 billion (Rs. 1.45 trillion), while farmers have received US$ 10.44 billion (Rs. 87,558 crore). He also mentioned that E20 petrol (20% ethanol-blended petrol) is now available at over 15,600 outlets nationwide. The government launched E100 fuel in March, ideal for high-performance engines due to its high-octane rating of 100-105.

Ethanol production is set to increase further as the government has resumed the rice supply from the Food Corporation of India to ethanol distilleries, allowing them to purchase up to 23 lakh tonnes through e-auctions from August to October 2024. Additionally, the sugarcane juice and syrup supply to distilleries will commence in ESY 2024-25 (November 2024). To boost ethanol production, the government has provided an additional incentive of US$ 0.12 (Rs. 9.72) per litre for ethanol supplies from maize, US$ 0.10 (Rs. 8.46) per litre from damaged rice during August 2023, and US$ 0.082 (Rs. 6.87) per litre from C-heavy molasses during December 2023.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.