Indian cabinet approves advancing 20% ethanol blending target to 2025-26

The Indian Cabinet, headed by Prime Minister Narendra Modi, at its meeting approved the amendments to the National Policy on Biofuels.

It has approved advancing the target of blending 20 per cent ethanol in petrol by 5 years to 2025-26. The cabinet has also approved to allow more feedstocks for the production of biofuels in a bid to cut reliance on imported oil for meeting the country’s energy needs.

The main amendment is for advancing the target of blending 20 per cent ethanol in petrol (20 per cent ethanol, 80 per cent petrol) to 2025-26 from 2030.

It also provides for promoting the production of biofuels in the country, under the Make in India programme, by units located in Special Economic Zones (SEZ)/ Export Oriented Units (EoUs).

These decisions will help India, which depends on imports for meeting 85 per cent of its oil needs, to cut reliance on overseas shipments.

The Cabinet also approved granting “permission for export of biofuels in specific cases.

The Union Cabinet has also hiked the price of ethanol extracted from sugarcane for blending in petrol by up to Rs 1.47 per litre for 2021-22 marketing year starting December, as part of its target to achieve 20 percent doping by 2025.

The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, raised the price of ethanol extracted from sugarcane juice to Rs 63.45 per litre from the current Rs 62.65 per litre for the supply year beginning December 2021.

The rate for ethanol from C-heavy molasses has been increased to Rs 46.66 per litre from Rs 45.69 per litre currently, and that of ethanol from B-heavy to Rs 59.08 per litre from Rs 57.61 per litre.

Oil Marketing Companies (OMCs) buy ethanol at a price fixed by the government.