Government gives nod to 422 ethanol projects   Link 

Ethanol blending is at all-time high Link

In 2014, less than 1% ethanol was blended with petrol. Last year (12 months to November 2020) 4.34% was achieved and in the 1st 4 months of current year it is at record 7.23%. 2 million tonnes of sugar will be diverted to meet the CY's 8.4% blending target. 10% blending is expected by 2022 year-end, which will need 400 crore litres of ethanol link.

Sugar industry says it could easily have supplied more ethanol last year but uptake was down due to shortage of local depot capacity.

Ethanol capacity to be raised to 1675 crore litres

Govt has preponed the 20% final blending target from 2030 to 2025. "For 20% blending, 1000 crore litres will be needed. This fuel is worth Rs 60,000 to 65,000cr at current prices," Union minister Pradhan said. 

Govt has approved 422 ethanol project to raise capacities to 1675 crore litres at cost of Rs 42,000cr, via soft loans for 6 years at 6% (or half of commercial rates). 700 crore litres will come from sugar industry, where 6m tonnes of sugar will be diverted to ethanol. Grain-distilleries will contribute another 700 crore litres, that requires 17.5m tonnes of feed such as maize (which Bihar is pursuing), rotten grains from FCI, broken rice, etc. 

The move will provide sugar mills with revenues from surplus sugar to settle farmer dues, and clear overflowing food-grain stocks due to over-production & MSP procurement. "These proposals are from 22 states. So, we will distribute production of ethanol benefiting farmers across the country. In next three years, we expect to almost double our existing production capacity of 684 crore litres through these new projects,” said a senior food ministry official.