Question : Production of Ethanol

(a) the total quantum of production of ethanol in the country during each of the last three years and the estimated production in the current year;
(b) whether the Government targets on production of ethanol blended fuel are being met, if so, the details thereof and if not, the reasons therefor;
(c) whether the ethanol produced from molasses instead of sugarcane is more useful and beneficial and if so, the details thereof;
(d) whether the production of ethanol directly from sugarcane is permitted in the country and if so, the details thereof along with the names of major mills which are producing ethanol directly from sugarcane; and
(e) the measures taken/being taken by the Government to increase the production of ethanol and promote its usage in the country?

MINISTER OF PETROLEUM & NATURAL GAS
(SHRI DHARMENDRA PRADHAN)
(a) & (b): The ethanol procured for ethanol blended petrol by Oil Marketing Companies (OMCs) in the last three years is as under:
Ethanol Supply Year (ESY)*
Quantity (in crore litre)
2016-17
66.5
2017-18
150.5
2018-19
188.6
*ESY – Ethanol Supply Year (1st Dec to 30th Nov)
Based on the offers received so far from ethanol manufacturers, the amount of ethanol contracted by OMCs for supply during the current ESY is 139.56 crore litre.
National Biofuel Policy -2018 envisages an indicative target of 20% blending of ethanol in petrol to be achieved by 2030. The ethanol blending depends on the availability of ethanol which further depends on availability of raw material for ethanol production viz, sugarcane, damaged food-grains unfit for human consumption, etc. and supply demand scenario in other ethanol consuming sectors like potable alcohol, pharma, chemical, petrochemicals, etc
(c): Department of Food and Public Distribution (DFPD) has informed that ethanol produced either from molasses or sugarcane is same and equally beneficial.
(d): The names of major mills which are producing ethanol directly from sugarcane juice/sugar/sugar syrup are annexed.
(e): The important measures taken to increase the production of ethanol for blending include :
(i) Encouraging production of ethanol from sugarcane juice and sugar/sugar syrup.
(ii) Fixing remunerative ex-mill price of ethanol from various feed stocks.
(iii) Extending interest subvention to distilleries.
(iv) Amendment to Industries (Development & Regulation) Act, 1951, for free movement of denatured ethanol for Ethanol Blended Petrol (EBP) Programme.
(v) Reduction in Goods & Service Tax on ethanol meant for EBP Programme from 18% to 5%.
(vi) Extension of EBP Programme to whole of India except island UTs of Andaman Nicobar and Lakshadweep with effect from 01.04.2019.
(vii) Enhancing ethanol storage at Oil Marketing Companies locations,
(viii) Formulating an “Ethanol Procurement Policy on a long term basis under Ethanol Blended Petrol (EBP) Programme”.
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