Cabinet approves Mechanism for procurement of ethanol under Ethanol Blended Petrol Programme

The Cabinet Committee on Economic Affairs (CCEA) has approved higher ethanol price derived from different sugarcane based raw materials under the EBP Programme for the forthcoming sugar season 2022-23 during ESY 2022-23 from 1st December 2022 to 31st October, 2023.

  • The prices of ethanol from C heavy molasses route, B heavy molasses route, sugarcane juice/sugar/sugar syrup route have been approved.
  • All distilleries will be able to take benefit of the scheme and large number of them are expected to supply ethanol for the EBP programme.

Ethanol Blended Petrol (EBP) Programme

  • Government has been implementing Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 10%.
  • This programme has been extended to whole of India except Union Territories of Andaman Nicobar and Lakshadweep islands with effect from 01st April, 2019 to promote the use of alternative and environment friendly fuels.
  • This intervention also seeks to reduce import dependence for energy requirements and give boost to agriculture sector.
  • Government has notified administered price of ethanol since 2014.
  • For the first time during 2018, differential price of ethanol based on feed stock utilized for ethanol production was announced by the Government.
  • The target of achieving average 10% blending has been achieved in June, 2022, much ahead of the target date of November, 2022.
  • Government has advanced the target of 20% ethanol blending in petrol from earlier 2030 to ESY 2025-26 and a “Roadmap for ethanol blending in India 2020-25” has been put in public domain.

Redefine Ethanol Supply Year

  • Now government has redefined the Ethanol Supply Year as a period of ethanol supply from 1st November of a year to 31st October of the following year from 1st November, 2023 onwards.

Written by 

Leave a Reply

Your email address will not be published. Required fields are marked *