Centre Sets Target Of 362 Crore Litres Of Ethanol For Sugar Mills In 2020-21
The government has fixed 10% blending targets for mixing ethanol with petrol by 2022 and 20% blending targets by 2030. During the last ethanol supply year 2018-19, about 180 crore litres of ethanol was supplied by sugar mills to oil companies, achieving a 5% blending target.
Source: ET | 25 August, 2020 | 12:46 PM
To encourage mills to divert sugarcane to produce ethanol for blending with petrol, the government has also allowed production of ethanol from B-heavy molasses, sugarcane juice, sugar syrup and sugar.
It has fixed remunerative ex-mill price of ethanol derived from c-heavy molasses at Rs 43.75/litre; from B-heavy molasses at Rs 54.27/litre and Rs 59.48/litre for ethanol derived from sugarcane juice/sugar/sugar syrup for ethanol season 2019-20 (December-November).
The government has fixed 10% blending targets for mixing ethanol with petrol by 2022 and 20% blending targets by 2030.
Soft loans of about Rs 18,600 crore are being extended through banks to 362 projects (349 sugar mills and 13 molasses-based standalone distilleries) for enhancing ethanol production capacity for which an interest subvention of Rs 4,045 crore is being borne by the government for five years, he stated in the circular.
Singh pointed out that there is enough demand of ethanol by OMCs and as remunerative prices of ethanol are being fixed by the government, sugar millers may not have any problem of diversion of sugarcane to ethanol. The revenue from production and supply of ethanol to OMCs is realised by mills within three weeks of supply whereas revenue from sale of sugar products is realised within 12-15 months, he said, adding that diverting sugarcane to ethanol will improve cash flows of sugar mills and facilitate them to make timely payment of cane dues.