The government informed the Lok Sabha on Monday that the current percentage of blended biodiesel in diesel is less than 0.1%. The MoS for Petroleum and Natural Gas, Rameshwar Teli, informed the lower house of Parliament that the National Policy on Biofuels 2018 represents a target of 5 per cent of blending biodiesel in diesel by 2030. The Minister said the government has taken several significant steps towards achieving a 20 per cent blending of ethanol in petrol.
The Minister highlighted that sugarcane and foodgrains such as maize, rice, and surplus stock of other grains that come under the Food Corporation of India should be allowed to use for the conversion of ethanol into petrol and administered a price mechanism for procurement of ethanol under the EBP Programme including the increased ex-mill price of ethanol every year from 2017.
The central government plans to achieve a 20 per cent blending of ethanol in petrol
On Monday, the Ministry of Petroleum and Natural Gas, in a written reply, informed the Lok Sabha that the government is working towards achieving a 20 per cent conversion of ethanol. He also pointed out that the measures will include decreasing the GST rate to 5 per cent on ethanol for the EBP Programme and amending the Industries (Development & Regulation) Act to allow free movement of ethanol.
The government also said that the interest subvention scheme for enhancement and augmentation of ethanol production capacity will also be included. As per the Union, the average percentage of blended ethanol in petrol is eight per cent as of July 26, 2021.
Conversion of ethanol to petrol
“The present percentage of blending of biodiesel into diesel is less than 0.1 per cent. The national policy on biofuels, 2018, prescribes an indicative target of 5 per cent blending of biodiesel into diesel by 2030, “said Teli in Lok Sabha.
Teli further explained, saying, for the past few years, the availability of feedstock for biodiesel has been low, he said this shortage was due to the increase in price and low availability of feedstock for biodiesel. Moreover, biodiesel is now being sold in the market by several agencies other than oil marketing firms.
“To increase the supply of biodiesel in the country, OMCs are regularly floating Expressions of Interest (EoI) to encourage the production of biodiesel from used cooking oil,” he further added.