According to the Economic Survey 2021-2022, the supply of ethanol in the country is likely to reach 302 crore liters to enable blending with petrol.
The government has set a target of 20% ethanol blending with petrol by 2025 to reduce the country’s crude oil import bill, boost the agriculture sector and reduce environmental pollution.
Ethanol supply under the Ethanol Blended Petrol (EBP) program is expected to exceed 302 crore liters to achieve around 8.1% by the end of the ethanol supply year (ESY) 2020-2021 (December 1, 2020 – November 30, 2021). Is. Composite, noted the Economic Survey. This is an increase of 74.5% over the previous year when 173.3 crore liters was produced.
The ethanol blending target for ESY 2021-22 is 10%.
The government last year notified massive emission standards for E12 (15% ethanol blended with petrol) and E15 (15% ethanol mixed with petrol) so that the automobile industry can manufacture E12- and E15-compliant motor vehicles.
Under the EBP programme, the government aims to accelerate the production of ethanol, including opening up ‘alternative’ routes for ethanol production, reducing the GST on ethanol from 18% to 5% and through an interest subvention scheme.
The government is encouraging distilleries to produce ethanol from rice available with FCI and maize and has set a target of producing 1,500 crore liters of ethanol by 2025, of which nearly half, or 740 crore liters, will be from grain-based distilleries. The rest is coming from sugar-based distilleries.
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