New Delhi: The Union Cabinet on Wednesday approved an increase in the ex-mill price of ethanol derived from C Heavy Molasses (CHM) to Rs 57.97 per litre from Rs 56.58 per litre earlier, under the Ethanol Blended Petrol programme, for the supply year 2024-25.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, said the approval will not only facilitate the continued policy for the Government in providing price stability and remunerative prices for ethanol suppliers but will also help in reducing dependency on crude oil imports, savings in foreign exchange and bring benefits to the environment.
In the interest of sugarcane farmers, as in the past, GST and transportation charges would be separately payable.
An increase in prices of CHM Ethanol by 3 per cent will ensure sufficient availability of ethanol to meet the increased blending target, according to an official statement issued after the cabinet meeting.
The Ethanol Supply Year (ESY) 2024-25 extends from November 1, 2024 to October 31, 2025 under the Ethanol Blended Petrol (EBP) Programme of the Government of India.
The government has been implementing the Ethanol Blended Petrol (EBP) Programme wherein Oil Marketing Companies (OMCs) sell petrol blended with ethanol up to 20 per cent. This programme is being implemented across the country to promote the use of alternative and environment-friendly fuels. This intervention also seeks to reduce import dependence on energy requirements and give a boost to the agriculture sector.
During the last ten years (as of Dec 31, 2024), ethanol blending in petrol by Public Sector OMCs has resulted in approximate savings of more than Rs 1,13,007 crore of foreign exchange and crude oil substitution of about 193 lakh metric tonnes.
Ethanol blending by Public Sector Oil Marketing Companies (OMCs) has increased from 38 crore litre in Ethanol Supply Year 2013-14 (ESY) – currently defined as the ethanol supply period from November 1 of a year to October 31 of the following year) to 707 crore litre achieving an average blending of 14.60 per cent in ESY 2023-24, the statement said.
The government has advanced the target of 20 per cent ethanol blending in petrol from early 2030 to ESY 2025-26 and a “Roadmap for ethanol blending in India 2020-25” has been put in public domain.
As a step in this direction, OMCs plan to achieve 18 per cent blending during the ongoing ESY 2024-25. Other recent enablers include enhancement of ethanol distillation capacity to 1713 crore litre per annum; Long Term Off-take Agreements (LTOAs) to set up Dedicated Ethanol Plants (DEPs) in ethanol deficit States; encouragement of conversion of single feed distilleries to multi-feed; availability of E-100 and E-20 fuel and launch of flexi fuel vehicles. All these steps also add to the ease of doing business and achieving the objectives of Atmanirbhar Bharat, the statement said.
Due to the visibility provided by the Government under the EBP Programme, investments have happened across the country in the form of a network of greenfield and brownfield distilleries, storage and logistics facilities apart from employment opportunities and sharing of value within the country among various stakeholders.
All distilleries will be able to take benefit of the scheme and a large number of them are expected to supply ethanol for the EBP programme. This will help in quantifiable forex savings, crude oil substitution, environmental benefits and early payment to cane farmers, the statement added.
(IANS)
