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Informist, Friday, Aug 16, 2024

 

NEW DELHI – Oil marketing companies procured 4.61 bln ltr of ethanol and achieved a cumulative blending of 13.3% in the ethanol supply year 2023-24 (Nov-Oct) as of Aug 1, according to a monthly report by the Petroleum Planning & Analysis Cell. In July, oil companies bought 604 mln ltr of the biofuel and achieved 15.8% blending with petrol, tad down from 15.9% the previous month.

 

Oil companies buy ethanol to blend with petrol to promote green mobility and achieve blending targets. To reduce dependence on crude oil, the government has set a target of achieving 15% blending of ethanol with petrol in 2023-24, 18% in the subsequent year, and 20% in 2025-26. To achieve the 20% blending aim, India needs about 10.16 bln ltr of ethanol and 13.50 bln ltr for other uses. 

 

Highlighting India's leadership in the Global Biofuel Alliance, Home and Cooperation Minister Amit Shah said India will meet its 20% ethanol blending target on time. However, according to experts, India will likely miss the 15% blending target this year, as the government restricted sugar diversion for ethanol production amid concern over sugar availability. The country is expected to achieve only 13.7% ethanol blending with petrol by October, according to Nagaraj Meda, the chairman and managing director of commodity research firm TransGraph Consulting. 

 

Food Minister Pralhad Joshi said ethanol production capacity as of Aug 1 has increased to 15.89 bln ltr per annum, sufficient to meet the domestic biofuel requirements of the country. As of Nov 30, the ethanol production capacity in the country was about 13.80 bln ltr per annum. To meet the 20% blending target, India needs 17.00 bln ltr ethanol production capacity considering the plant operates at 80?ficiency. End

 

Reported by Afra Abubacker

Edited by Akul Nishant Akhoury

 

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