Government plans to create a carryover stock of ethanol

The Indian government is planning to create a carryover stock of ethanol for the next year anticipating a rise in demand for E20 fuel in the country. E20 fuel is a blend of 20 percent ethanol with petrol. The government aims to achieve the 20 percent ethanol blending target by 2025.

Like sugar, the government plans to create a carryover stock of ethanol with OMCs and distilleries for 2023-24 ethanol year (December-November) and more sugar would be diverted for the same, he said. The government has kept the 12 percent ethanol blending target in the ongoing 2022-23 ethanol year while 15 percent for the next year.

The ethanol production capacity has gone up to 1,040 crore litres till February this year. The government is encouraging ethanol capacity creation under an interest subvention scheme.

The government has approved 243 projects and banks have already sanctioned Rs 20,334 crore loans and out of which Rs 11,093 crore has been disbursed.

The government reviewed the upcoming projects and about 250-300 crore litres of ethanol capacity will come in the next 9-10 months.