'Ethanol blending in petrol can cut down crude import'

Concerned over slow progress of ethanol blending in petrol and diesel, a parliamentary committee has expressed that the government should implement the Ethanol Blending Programme in order to cut down on crude oil import in the future and save forex reserve.

At present, ethanol blended petrol is available only in 11 states. The Standing Committee on Petroleum and Natural Gas in its report submitted to Lok Sabha recently observed that 5% ethanol blending and subsequently higher blending in the future can significantly lower crude import. It can also provide new opportunities to sugarcane farmers.

 The committee observed that even after the government making 5% ethanol blending mandatory and fixing its price in November, last year, only 2% blending level has been achieved so far.

 It expressed concern that the availability of ethanol is not uniform across the country. It also observed that in sugarcane rich states such as Uttar Pradesh, Andhra Pradesh, Gujarat, Haryana, Tamil Nadu, higher quantities of ethanol have been offered in comparison with the states of Bihar, Chhattisgarh, Jharkhand, Odisha, West Bengal, where no offers have been received.

It also said that sole dependence on molasses-based ethanol can limit the implementation of programme and suggested the government set up industry group to look into feasibility of producing ethanol from variety of feed stocks.

The committee demanded that the government give priority to ethanol for blending purposes, observing that state governments do not give priority to blending as they get more revenue from liquor sector which too consumes ethanol.

It further suggested the government adopt the Brazil model, where the ethanol production is allowed directly from sugarcane juice and the output there is 14 times more than India. Sugar mills from India too have been demanding that production of ethanol may be allowed directly from sugar cane juice during the period of surplus production but the government allows ethanol production from molasses only.