Ethanol as an Alternative Fuel

Ethanol as an Alternative Fuel

The Minister for Petroleum& Natural Gas Shri Dr. M. Veerappa Moily informed the Lok Sabha in a written reply today that Oil Marketing Companies (OMCs) have recently floated a new tender for procurement of ethanol, covering the period December 2013 to November 2014. The tender has been opened and is under evaluation. He added That the Government has decided on 3.7.2013 (OMCs) will procure ethanol ( Produced from molasses route only) from domestic sources to achieve the requirement of 5% ethanol blending with petrol by October 2013 in areas/parts of country where sufficient quantity of ethanol is available.  In other parts of the country, blending of ethanol may be increased progressively depending upon the availability of ethanol to reach the 5% level.  Accordingly, OMCs are implementing the programme in 20 States and 4 UTs depending upon the availability of ethanol.

The Minister stated that the Government launched Ethanol Blended Petrol (EBP) Programme  w.e.f. 1.11.2006 in the entire country except the North Eastern States, Jammu & Kashmir, Andaman & Nicobar Islands and Lakshadweep.

Dr. Moily also said that as par the information received form Indian Sugar Mills Association (ISMA), the cost of production of fuel-grade ethanol varies from Rs. 36 to Rs. 39 per litre.

He also informed that the Quantity of ethanol (alcohol) produced in the country during last three years as per figures given by Indian Sugar Mills Association (ISMA) are as under:

Year	Ethanol (alcohol) Production (in million litres)
2010-11	2742.75
2011-12	2956.00
2012-13	2934.25 (estimated)

The Minister further informed that as per the Report of the Committee on Development of Bio-fuels, published by Planning Commission of India in 2003, by the end of 12^th Five Year Plan (2013-17) the demand for ethanol in India by the transport sector at 5 percent level of blending was project at 1,039.27 million litres.  The overall supply/production of ethanol in 2016-17 was projected at 3,785 million litres, out of which 1754 million litres was available for utilization by the transport  sector/EBP Programme after meeting the projected demand of the chemical industy ( 1003 million litres) and  potable alcohol ( 1028 million litres).

In reply to another query, MoS (PNG) Smt. P.Lakshmi informed that as on 28 November 2013, Industry have procured 14.1 crore litre of ethanol.  This is against tenders floated in December 2012 for requirement of 140.4 crore litres of ethanol for 10% blending in 6 States and 5 % blending in another 14 States and  4 UTs for the period from July 2013 to June 2014.  Against the said tender, a total quantity of 55 crore litres of ethanol was offered by the bidders.  Offers were not received for West Bengal. Jharkhand, Odisha, Chhattisgarh and Madhya Pradesh. A total quantity of 40 crore litres was finalized by the oil Industy for procurement at 54 industry locations.   

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RCJ