The National Policy on Biofuels has identified various feedstocks for ethanol production including C & B – Heavy Molasses, sugarcane juice, sugar, sugar syrup, biomass in the form of grasses, and agriculture residues (rice straw, cotton stalk, corn cobs, sawdust, and bagasse). Other items include sugar-containing materials like sugar beet, sweet sorghum, etc. and starch-containing materials such as corn cassava, rotten potatoes, agro-food/pulp industry waste, etc., damaged food grains like broken rice, food grains unfit for human consumption, food grains during surplus phase as declared by National Biofuel Coordination Committee (NBCC), industrial waste, industrial waste off-gases, algae and cultivation of seaweeds etc.
Under the Ethanol Blended Petrol (EBP) Programme, the blending of ethanol with petrol increased from 38 crore litres in Ethanol Supply Year (ESY) 2013-14 to 302.3 crore litres in ESY 2020-21 with a corresponding increase in blending percentage from 1.53% to 8.17%, according to an official release.
During the corresponding period, the consumption of petrol itself has also increased by approximately 64%. The production of fuel-grade ethanol and its supply to Oil Marketing Companies (OMCs) has increased by more than 7 times from ESY 2013-14 to ESY 2020-21.
Encouraged by this performance, the government decided to advance the target of 20% ethanol blending in petrol from 2030 to ESY 2025-26. OMCs achieved the target of 10% ethanol blending in petrol in June, 2022 i.e. five months ahead of the target during ESY 2021-22. The blending of ethanol with petrol further increased to more than 500 crore litres in ESY 2022-23 with a corresponding increase in blending to 12.06%. During the current ESY 2023-24, the blending percentage has already crossed 13%.
In order to achieve the 20% ethanol blending target by ESY 2025-26, the government has taken several measures which include a detailed Roadmap for Ethanol Blending in India; expansion of feedstock for the production of ethanol; remunerative price for procurement of ethanol under the EBP Programme; and lowered GST rate to 5% on ethanol for EBP Programme.
Amendment in Industries (Development & Regulation) Act for free movement of ethanol across states for blending; interest subvention scheme for enhancement and augmentation of ethanol production capacity in the country; and regular floating of Expression of Interest (EoI) by Public Sector OMCs for procurement of ethanol are among the other measures.
