The Government, since 2014, has taken several measures to meet the ethanol blending targets which includes expansion of feedstock for production of ethanol, administered price mechanism for procurement of cane based ethanol under the Ethanol Blended Petrol (EBP) Programme, lowered GST rate to 5% on ethanol for EBP Programme, introduction  of various Ethanol Interest Subvention Schemes (EISS), during 2018-22, for ethanol production from molasses as well as grains and Long Term Offtake Agreements (LTOAs) by Oil Marketing Companies (OMCs) with Dedicated Ethanol Plants (DEPs) etc. Supply of ethanol blended petrol for public sector OMCs has surged from 2506 crore litre during ethanol supply year 2013-14 to estimated 4828 crore litre during ethanol supply year 2023-24 with corresponding increase in blending percentage from 1.53% to 14.60%. Ethanol blending in petrol by Public Sector OMCs has resulted in crude oil substitution of about 185 LMT (lakh metric tonne) and net CO₂ reduction of about 557 lakh metric tonnes during the last ten years.

This information was given by THE MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS SHRI SURESH GOPI, in a written reply in Lok Sabha today

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MONIKA

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