Ethanol Procurement By Oil Companies Increases From 38 Crore Litres In 2013-14 To 343 Crore Litres In 2020-21

Ethanol procurement by public sector Oil Marketing Companies (OMC) has increased from 38 crore litres in Ethanol Supply Year (ESY) 2013-14 to over 343 crore litres in ESY 2020-21.

Under the Ethanol Blended Petrol (EBP) programme, ethanol suppliers have contracted to supply 343.16 crore litres of ethanol to public sector OMCs for the ongoing ESY 2020-21.

Till 2 August, 209.67 crore litres of ethanol has been received by OMCs. It must be noted that the period of Ethanol Supply Year (ESY) 2020-21 is from 1 December 2020 to 30 November 2021.

This information was given in a written reply by the Minister of State for Petroleum and Natural Gas, Rameswar Teli, in the Lok Sabha on Monday (9 August).

Presently, OMCs are selling ethanol-blended petrol from their retail outlets, which contain 90 per cent petrol and 10 per cent ethanol.

The Government, since 2014, has taken several measures to increase the production and utilization of ethanol in the country.

The Modi government permitted procurement of ethanol produced from other non-food feedstock besides molasses, like cellulosic and lignocellulosic materials like cotton stalk, wheat straw, rice straw, bagasse, bamboo etc.

The Government also allowed sugarcane and food grains (maize and surplus stocks of rice with Food Corporation of India) for conversion to ethanol.

Other measures include enhanced ex-mill price of ethanol year on year from ethanol supply year 2017-18; lowering of GST rate to five per cent on ethanol for EBP Programme; amendment in Industries (Development and Regulation) Act for free movement of ethanol across states for blending; an interest subvention scheme for augmentation of ethanol production capacity in the country.