The Union Government has amended the Sugarcane (Control) Order, 1966 by allowing the setting up of a unit exclusively to produce ethanol.
- In the amendment gazetted on May 31, the Centre has amended the provisions which had till now not allowed direct production of ethanol from sugarcane. Until now, ethanol can only be produced from sugar juice or from molasses, a byproduct in the sugar manufacturing process.
- The amendment also expanded the definition of ethanol to include rectified spirit used in chemical industries, extra neutral alcohol used for making liquor as well as sanitisers and other forms of ethyl alcohol.
- The amendment also makes it mandatory for these standalone ethanol plants to pay fair and remunerative price to sugarcane farmers. In other words, a big industry cannot come in and start buying sugarcane from farmers at whatever price. They are obligated to pay fair and remunerative prices to farmer.
Ethanol Blended Petrol (EBP) Programme
- As per the National Policy on Biofuels -2018 under the Ethanol Blended Petrol (EBP) Programme, oil marketing companies (OMCs) were given a target of blending 20 percent of ethanol in petrol by 2030. Though the companies had a mandate of blending it up to 10 percent, the programme was moving at a slow pace.
- The major sources of ethanol in India include sugarcane Juice, B-Heavy Molasses, C-Heavy Molasses, damaged food grains or maize and surplus rice.
- In April 2020 the government also allowed the conversion of surplus rice, available with the Food Corporation of India (FCI), to ethanol.
- On March 22, 2021 the ministry of petroleum and natural gas has allowed the direct sale of ethanol as a standalone fuel for compatible automobiles. To implement this, the government had amended the Motor Spirit and High-Speed Diesel Order 2005. It has allowed oil marketing companies — Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation — to sell bioethanol (E100).
