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The Prime Minister, Narendra Modi, chairs the Cabinet Committee on Economic Affairs (CCEA).It has approved the revision of ethanol procurement price for Public Sector Oil Marketing Companies (OMCs). This approval pertains to the Ethanol Supply Year (ESY) 2024-25. It starts from 1st November, 2024 and ends on 31st October 2025.”The Government of India oversees the Ethanol Blended Petrol (EBP) Programme and has fixed the ex-mill price of ethanol derived from C Heavy Molasses (CHM).” This is for the Ethanol Supply Year 2024-25, from 1st November 2024 to 31st October 2025. It is set at Rs.57.97 per litre from Rs.56.58 per litre.
“Govt Approves 3% Hike in CHM Ethanol Prices to Ensure Supply
The approval will facilitate the Government’s policy for providing price stability. It ensures remunerative prices for ethanol suppliers. It will also help in reducing dependency on crude oil imports. This will result in savings in foreign exchange and bring benefits to the environment. In the interest of sugarcane farmers, as in the past, GST and transportation charges would be separately payable. Increase in prices of CHM Ethanol by 3% will assure sufficient availability of ethanol to meet the increased blending target.
CCEA : Govt’s Ethanol Blended Petrol Program Saves ₹1.13 Lakh Cr in Forex
Government has been implementing Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 20%.”The government is implementing this program nationwide to promote the use of alternative and environmentally friendly fuels.”This intervention also seeks to reduce import dependence for energy requirements and give boost to agriculture sector. During the last ten years (as on 31.12.2024), ethanol blending in petrol by Public Sector Oil Marketing Companies (OMCs) has resulted in approximate savings of more than Rs.1,13,007crore of foreign exchange and crude oil substitution of about 193 lakh metric tonnes.
Ethanol blending by Public Sector Oil Marketing Companies (OMCs) has increased significantly. It grew from 38 crore litre in Ethanol Supply Year 2013-14. This period, ESY, starts on 1st November of a year and ends on 31st October of the following year. The blending reached 707 crore litre, achieving average blending of 14.60% in ESY 2023-24.
CCEA : “India Advances 20% Ethanol Blending Target to 2025-26”
Government has advanced the target of 20% ethanol blending in petrol from earlier 2030 to ESY 2025-26. A “Roadmap for ethanol blending in India 2020-25” has been put in public domain. As a step in this direction, OMCs plan to achieve 18% blending during the ongoing ESY 2024-25. Other recent enablers include enhancement of ethanol distillation capacity to 1713 crore litre per annum. Long Term Off-take Agreements (LTOAs) are in place to set up Dedicated Ethanol Plants (DEPs) in ethanol deficit States. Authorities encourage conversion of single feed distilleries to multi feed. There is availability of E-100 and E-20 fuel. They also plan the launch of flexi fuel vehicles etc. All these steps also add to ease of doing business and achieving the objectives of Atmanirbhar Bharat.
Because the Government has provided visibility under the EBP Programme, investments have spread across the country. They have formed a network of greenfield and brownfield distilleries, storage and logistics facilities. In addition to infrastructure, there’s been an increase in employment opportunities. There is also a sharing of value within the country among various stakeholders. All distilleries will benefit from the scheme. A large number of them are expected to supply ethanol for the EBP programme. This will help in quantifiable forex savings, crude oil substitution, environmental benefits and early payment to cane farmers.
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