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Informist, Friday, Dec. 13, 2024

 

NEW DELHI – The Indian Sugar and Bio-energy Manufacturers Association has sent a roadmap for ethanol blending beyond 2025 to the government. The association has asked the government to incentivise ethanol consumption and ensure the success of the blending programme, ISMA said in a release on Friday. 

 

"There should be three pillars critical to the success of this programme--the demand side incentives through differential fuel pricing, supply side incentives through tax reductions and PLI (production-linked incentives) on FFV (flex-fuel vehicles) & HEV (hybrid electric vehicles) and finally provide correct carbon accounting and benefits at all levels of the value chain," ISMA Director General Deepak Ballani said in the release. 

 

The roadmap stressed the adoption of advanced technologies to ensure a smooth transition to higher ethanol blends. On Friday, The Hindu BusinessLine reported that the government may reduce the ethanol blending target to 18% from 20% by 2025, as most of the petrol-run vehicles are not compatible to run on E20 fuel. The E20 fuel comprises 20% ethanol blended in petrol. 

 

The auto industry has raised concern about using the E20 fuel in old petrol vehicles as it could damage the fuel pipes. They also said the mileage would be impacted, and only vehicles compatible with BS-VI norms can run efficiently on the E20 fuel, the newspaper reported. 

 

In 2023-24 (Nov-Oct), India achieved 14.6% ethanol blending with petrol, below the target of 15% amid feedstock supply challenges. To ensure smooth ethanol production, ISMA has asked the government to invest in research and technology to promote second-generation ethanol production. The 2G ethanol uses agri-residues like rice and wheat straw, cane trash, cotton stalk, and bagasse. 

 

India is dispensing E20 in 17,000 retail outlets and E100 in 400 pumps, ISMA said in the release. However, to ensure the consumption of biofuel, ISMA has urged the government to reduce GST to 5% for flexi-fuel vehicles. It also recommended targeted subsidies of INR 350 billion to create an additional 7.70 billion litres of ethanol production capacity. 

 

According to the roadmap, India's ethanol blending demand will increase to 29.94 billion litres in 2034-35 from 11.27 billion litres in 2025-26. End

 

Reported by Afra Abubacker

Edited by Akul Nishant Akhoury

 

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