New Delhi:The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved the revision of ethanol procurement price for Public Sector Oil Marketing Companies (OMCs) for the Ethanol Supply Year (ESY) 2024-25 starting from November 1, 2024, to October 31, 202,5 under the Ethanol Blended Petrol (EBP) Programme of the Centre.
Briefing reporters here, Union Minister Ashwini Vaishnaw said the administered ex-mill price of ethanol for the EBP Programme derived from C Heavy Molasses (CHM) for the Ethanol Supply Year 2024-25 has been fixed at Rs 57.97 per litre from Rs 56.58 per litre.
Vaishnaw further said that the approval will not only facilitate the continued policy for the government in providing price stability and remunerative prices for ethanol suppliers but will also help in reducing dependency on crude oil imports, savings in foreign exchange and bring benefits to the environment.
In the interest of sugarcane farmers, as in the past, GST and transportation charges would be separately payable. The increase in prices of CHM Ethanol by 3 per cent will ensure sufficient availability of ethanol to meet the increased blending target, he said.
An official statement said, "The government has been implementing the EBP Programme wherein OMCs sell petrol blended with ethanol up to 20 per cent. This programme is being implemented across the country to promote the use of alternative and environment-friendly fuels."
"This intervention also seeks to reduce import dependence for energy requirements and give a boost to the agriculture sector. During the last ten years (as on December 31, 2024), ethanol blending in petrol by Public Sector Oil Marketing Companies (OMCs) has resulted in approximate savings of over Rs1,13,007 crore of foreign exchange and crude oil substitution of about 193 lakh metric tonnes," Vaishnaw said.
Ethanol blending by Public Sector OMCs has increased from 38 crore litre in Ethanol Supply Year 2013-14 to 707crore litre achieving an average blending of 14.60 per cent in ESY 2023-24, Union Minister added.
The government has advanced the target of 20 per cent ethanol blending in petrol from 2030 to ESY 2025-26 and a roadmap for ethanol blending in India 2020-25 has been put in the public domain, he said.
"As a step in this direction, OMCs plan to achieve 18% blending during the ongoing ESY 2024-25. Other recent enablers include enhancement of ethanol distillation capacity to 1713 crore litre per annum, long-term off-take Agreements to set up Dedicated Ethanol Plants in ethanol deficit states; encourage conversion of single feed distilleries to multi-feed; availability of E-100 and E-20 fuel; launch of flex-fuel vehicles etc. All these steps also add to the ease of doing business and achieving the objectives of 'Atmanirbhar Bharat'," Vaishnaw added.
He further said that due to the visibility provided by the government under the EBP Programme, investments have happened across the country in the form of a network of greenfield and brownfield distilleries, storage and logistics facilities apart from employment opportunities and sharing of value within the country among various stakeholders.
"All distilleries will be able to take benefit of the scheme and a large number of them are expected to supply ethanol for the EBP programme. This will help in quantifiable forex savings, crude oil substitution, environmental benefits and early payment to cane farmers," he added.
