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Economy
Pradeep Kumar

16/06/21 11:00 AM IST

Ethanol distillation capacities to double by 2025

In news

The roadmap for ethanol blending in India 2020-25 has been released by the Prime Minister Shri Narendra Modi on 5th June, 2021

Highlights
  • Ethanol blending with petrol (EBP) program will bring positive impact on country’s economy too.
  • It would promote ethanol as a fuel which is indigenous, non-polluting and virtually inexhaustible and would improve the environment and the eco-system as use of E20 fuel reduces carbon monoxide emission by 30-50% and hydrocarbon by 20%.
  • To achieve blending targets, Government is encouraging sugar mills and distilleries to enhance their distillation capacities for which Government is facilitating them to avail loans from banks for which interest subvention up to 6% is being borne by Government.
  • India is facing a situation of plenty with surplus sugar, leading to liquidity problem to sugar mills and delayed payments of cane dues.
  • The Government is encouraging sugar mills to divert excess sugarcane to ethanol which is blended with petrol.
  • About 5 crore sugarcane farmers & their families and 5 lakh workers associated with sugar mills & other ancillary activities would be benefitted with this intervention.
  • Sugarcane farmers will get timely payment of sugarcane dues as the realization from sale of ethanol is much faster than sale of sugar.
Source: PIB

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