India has achieved its target of an average of 10% blending across the country five months in advance.
- The government and industry are hopeful of expediting the more ambitious target of increasing the ethanol blending to 20% by 2025-26.
Key Highlights
- A “Roadmap for Ethanol Blending in India 2020-25” was released by the Prime Minister in June, 2021 which lays out a detailed pathway for achieving 20% ethanol blending.
- This roadmap also mentioned an intermediate milestone of 10% blending to be achieved by November, 2022.
- However, due to the coordinated efforts of the Public Sector Oil Marketing Companies (OMCs) the target of 10% blending under the programme has been achieved much ahead of the targeted timelines of November, 2022 wherein the Public Sector OMCs have attained an average 10% ethanol blending in petrol across the country.
Key initiatives
- India’s ethanol blending percentage stood at 2.33% in 2014. With the steps taken by the government in the last eight years, the availability of ethanol for blending is expected to go up to 450 crore litres in the current Ethanol Supply Year (ESY) from 67 crore litres in 2014.
- Government of India, with the aim to enhance India’s energy security, reduce import dependency on fuel, save foreign exchange, address environmental issues and give a boost to domestic agriculture sector, has been promoting the Ethanol Blended Petrol (EBP) Programme.
- The ‘National Policy on Biofuels’ notified by the Government in 2018 envisaged an indicative target of 20% ethanol blending in petrol by year 2030.
- However, considering the encouraging performance, due to various interventions made by the Government since 2014, the target of 20% ethanol blending (E20) was advanced from 2030 to 2025-26. Ethanol blended petrol serves the twin aim of reducing carbon dioxide emissions and energy security.
- In an attempt to boost biofuel production, the government has also made amendments to include more feedstocks for their production.
- It also aims to promote the production of biofuels in the country under the ‘Make in India’ umbrella at units located in Special Economic Zones (SEZ)/ Export Oriented Units (EoUs).
- The government has also allowed the addition of new members to the National Biofuel Coordination Committee (NBCC).
- The government’s intent to boost blending is evident also from the decision to impose an additional differential excise duty of Rs 2 a litre on unblended fuel beginning October 1.
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