• Ethanol blending programme being implemented

    Petroleum & Natural Gas Minister Dharmendra Pradhan informed the Lok Sabha in a written reply that the Government, through Oil Marketing Companies (OMCs), is implementing the Ethanol Blended Petrol (EBP) Programme under which, OMCs sell ethanol blended petrol with percentage of ethanol upto 10%. Also, the Government has allowed procurement of ethanol produced from other non-food feedstocks, like cellulosic and ligno cellulosic materials including petrochemical route.

    The Government has fixed the price of ethanol for the ethanol supply year 2016-17 at Rs.39/ per litre. Additionally, Excise Duty, VAT/GST and transportation charges (as decided by OMCs) will be paid by OMCs. OMCs have procured 1.03 billion litres of ethanol during the ethanol supply year 2015-16 (till 7.11.2016). In 2015, the Government has asked OMCs to target 10 % blending of ethanol in as many States as possible. A Steering Committee and a Working Group on biofuels have been constituted in Ministry of Petroleum and Natural Gas. They are holding regular consultations with concerned stakeholders.

    The potential foreign exchange savings due to blending of ethanol for the ethanol supply year 2015-16 is approximately USD 353 Million. Also, the Government had announced a Bio-diesel Purchase Policy in October 2005. In August 2015, the Government has allowed sale of Bio-diesel (B100) by private manufacturers to bulk consumers. Moreover, retailing of bio-diesel blended diesel by Public Sector OMCs has started on 10th August, 2015.  Brandon LaFell Jersey

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