(a) whether the Government proposes to make any legal provision for mandatory mixing of five per cent ethanol in petrol, if so, the details thereof;
(b) whether the Government has prepared any action plan to increase the production of ethanol;
(c) whether any action plan is under consideration of the Government to increase the production of these crops; and
(d) if so, the details thereof and if not, the reasons therefor?
MINISTER OF PETROLEUM & NATURAL GAS
(SHRI DHARMENDRA PRADHAN)
(a): National Biofuel Policy-2018 envisages an indicative target of 20% blending of ethanol in petrol by 2030.
(b): Yes, Sir.
(c): & (d): In order to increase the production of ethanol, Government has taken a series of policy decisions which include :
(i) notification of National Biofuel Policy-2018,
(ii) differential price of ethanol from C heavy molasses, B heavy molasses, sugar, sugar syrup & sugarcane juice,
(iii) amendment to Industries (Development & Regulation) Act, 1951, for free movement of denatured ethanol for Ethanol Blended Petrol (EBP) Programme,
(iv) reduction in Goods & Service Tax on ethanol meant for EBP Programme from 18% to 5%,
(v) increased the scope of raw material by allowing production of ethanol from damaged food grains which are unfit for human consumption, fruit and vegetable wastes, etc.,
(vi) interest subvention scheme for financial assistance for sugar industry to increase distillation capacity, and
(vii) production of Second Generation Bio-ethanol using lignocellulosic biomass and other renewable feedstock.
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