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Ethanol Blending of Petrol
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha that in India, the Government has permitted Oil Marketing Companies (OMCs) to sell Ethanol blended petrol with percentage of ethanol up to 10% as per BIS Specification to achieve 5% ethanol blending across the country as a whole. During the sugar year 2014-15, OMCs have achieved a blending percentage of 2.3 per cent.
The Government has fixed the price of ethanol. As petrol has been decontrolled with effect from June, 2010 OMCs take appropriate decision on pricing of petrol as per international prices and market conditions.
Ethanol blending in Petrol results in saving of Petrol to the extent of its blending and consequent foreign exchange. The potential foreign exchange earnings for the Sugar Year 2014-15 amounts to around USD 285 Million.
In order to improve the availability of ethanol and encourage ethanol blending, the Government has taken following steps :
(i) The Government has fixed the delivered price of ethanol in the range of Rs.48.50 per litre to 49.50 per litre.
(ii) Ethanol produced from other non-food feedstocks besides molasses, like cellulosic and ligno cellulosic materials including petrochemical route, have been allowed to be procured.
(iii) Ministry of Petroleum and Natural Gas, on 1st September, 2015, inter-alia has asked OMCs to target ten percent blending of ethanol in Petrol in as many States as possible.
(iv) The procedure of procurement of ethanol under the EBP has been simplified to streamline the entire ethanol supply chain.
(v) Excise duty has been waived on ethanol supplies to OMCs for EBP by sugar mills during 2015-16.
Above initiatives to incentivize Ethanol Blended Petrol (EBP) Programme are expected to increase blending of ethanol in the near future. Trenton Cannon Authentic Jersey
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