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Ethanol Blending Program Saved Rs 24,300 Cr Foreign Exchange In 2022-23

The blending of ethanol into petrol has resulted in savings of over Rs 24,300 crore of foreign exchange in the supply year 2022-23, said Union Petroleum Minister Hardeep Puri on Wednesday.

Public sector oil marketing companies (OMCs) have saved about 509 crore litres of petrol on account of ethanol blending during the ethanol supply year 2022-23, besides leading to an expeditious payment of about Rs 19,300 crore to farmers.

It is estimated that a net reduction of net carbon dioxide to the tune of 108 lakh metric tonnes was seen during the period.

Notably, as recently as last week, oil marketing companies in the public sector announced an incentive of Rs 6.87 per litre for the production of ethanol from C-heavy molasses.

The oil companies believe this incentive would maximise ethanol production from the C molasses route and improve the overall availability of ethanol for the ethanol blended petrol programme.

C-molasses is a by-product of sugar factories and its use for ethanol production is an effective way to promote a green economy.

India has already rolled out 20 per cent blended fuel, though in a phased manner, in April 2023 and widespread availability is expected in days to come.

The government is ambitious of attaining 20 per cent ethanol-blended petrol by 2024-25 and 30 per cent by 2029-30. The government has advanced the target of E20 fuel from 2030 to 2025.

E20 blending in petrol was introduced by the Centre to reduce the country's oil import cost, energy security, lower carbon emissions and better air quality.

The number of retail outlets retailing E20 fuel is now more than 9,300 and will cover the entire country by 2025, Puri said today.

The Food Ministry in early December directed sugar mills not to use cane juice or syrup to produce ethanol.

In a U-turn, the central government in mid-December allowed the utilisation of juice as well as B-heavy molasses to produce ethanol but capped the diversion of sugar at 17 lakh tonnes for the current marketing season.

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