Question : Ethanol Production

(a) whether the Government proposes to promote ethanol production and if so, the details thereof along with the current ethanol production capabilities, State/UT-wise;
(b) whether any steps have been taken by the Government or any subsidy/tax benefits would be given to the producers for increasing the production and if so, the details thereof.
(c) whether the Government has set fuel-blending targets for petroleum run vehicles and if so, the details thereof;
(d) the current status of fuel blending, State-wise including Gujarat;
(e) the quantum of ethanol produced in the country, year and State-wise particularly in Maharashtra during the last three years and the current year; and
(f) whether the Government provides tax benefits for ethanol producers and if so, the details thereof?

MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS
(SHRI RAMESWAR TELI)
(a) & (b): Government has notified the National Policy Biofuels – 2018 to promote biofuels including ethanol production under the Ethanol Blended Petrol (EBP) Programme. Government, since 2014, has taken several measures to increase production and utilization of ethanol in the country which includes permitting procurement of ethanol produced from other non-food feedstock besides molasses, like cellulosic and lignocelluloses materials like cotton stalk, wheat straw, rice straw, bagasse, bamboo etc. including petrochemical route, subject to meeting the relevant BIS standards; allowing use of sugarcane and food grains (maize and surplus stocks of rice with Food Corporation of India) for conversion to ethanol;
administered price mechanism for procurement of ethanol under the Ethanol Blended Petrol (EBP) Programme including enhanced ex-mill price of ethanol year on year from ethanol supply year 2017-18; lowered GST rate to 5% on ethanol for EBP Programme; amendment in Industries (Development & Regulation) Act for free movement of ethanol across states for blending; interest subvention scheme for enhancement and augmentation of ethanol production capacity in the country. The current ethanol production capabilities, State/UT-wise is at Annexure.
(c): The National Policy on Biofuels – 2018 provides an indicative target of 20% blending of ethanol in petrol and 5% blending of Biodiesel in diesel by 2030. The Government has advanced the target of 20% blending of ethanol in petrol to 2025-2026.
(d) & (e): The current status of fuel blending, State-wise including Gujarat is at Annexure. The State-wise details of ethanol supplied to Oil Marketing Companies (OMCs) for blending with petrol under EBP Programme during last three Ethanol Supply Years (ESY) (Dec-Nov) 2018-19, 2019-20 and 2020-21and current year is at Annexure.
(f): Goods & Service Tax (GST) on ethanol meant for Ethanol Blended with Petrol (EBP) Programme has been reduced by Government from 18% to 5%.

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