Government encouraging enhancement of distillation capacities
Department of Food and Public Distribution (DFPB) Secretary Sudhanshu Pandey says an upcoming investment of about Rs.41,000 crore in sugar-based distillation capacities for India’s Ethanol Blending with Petrol (EBP) program would benefit five crore farmers, five lakh associated workers and save more than Rs.30,000 crore in foreign exchange on crude oil import bill.
Briefing media on 15 June 2021, Pandey said ethanol distillation capacities in the country would be more than doubled by 2025 and achieve 20% blending target. The media briefing follows the roadmap for ethanol blending in India 2020-25 which was released by the Prime Minister Narendra Modi on 5 June 2021 on the World Environment Day.
Notification regarding making E20 fuel available by April 2023 has been issued, said the DFPB.
To achieve blending targets, the government is encouraging sugar mills and distilleries to enhance their distillation capacities. The government is also bearing 6% interest rates on bank loans for enhancing mill and distillation capacities.
In 2018-19, ethanol production was about 189 crore litres, which helped achieved 5% ethanol blending with petrol. “It is also likely that we would be achieving 10% blending target by 2022,” said Pandey.
About 35 LMT of sugar is to be diverted for ethanol production in the next 2021-22 sugar season. This supply would be increased to about 60 LMT in 2025. This would solve the problem of excess sugarcane and sugar and would also help mills in clearing cane price dues of farmers, said Pandey.
For ethanol supply year 2020-21, the government has now increased the ex-mill price of ethanol derived from various feed stocks on the basis of raw material cost and conversion costs.
Pandey said to increase production of fuel grade ethanol, the government is also encouraging distilleries to produce ethanol from rice and maize. #manufacturing #investment #agriculture #imports #economy /fiinews.com
