India's progress in meeting its target for blending of fuel grade ethanol with petrol

Last Modified: Sat Nov 21 2020 07:51:38 GMT+0530 (India Standard Time)
  • 10%
    Percentage of blending of petrol with fuel grade ethanol that India is proposing to achieve by year 2022 and increase to 20% by 2030. Doing so will reduce the country's import dependency on crude oil, promote ethanol as a fuel which is indigenous & non polluting, and more importantly will also enhance income of sugarcane farmers.
  • 6,000,000 tonnes
    Surplus sugar in a normal season (about 32,000,000 tonnes produced against domestic consumption of 26,000,000 tonnes) which remains unsold. To deal with surplus stocks of sugar, sugar-mills are being encouraged by the Government to export sugar, for which Government has been extending financial assistance. However, India being a developing country can export sugar by extending financial assistance for marketing and transport only up to year 2023 as per WTO arrangements.
  • Rs. 19,000 crore
    Estimated value of unsold stock each year thereby affecting liquidity positions of sugar mills resulting in accumulation of cane price arrears of farmers. Since government assisted exports is not an option due to WTO restrictions, a long term solution to deal with surplus sugar, to improve sustainability of sugar industry and to ensure timely payment of cane dues to farmers, government has been encouraging diversion of excess sugarcane & sugar to ethanol for supplying to Oil Marketing Companies.
  • Rs. 12,500 crore
    Amount government will provide in financial assistance to sugar mills, distilleries and entrepreneurs to set up new distilleries and to expand their existing distillation capacities towards production of ethanol. Blending targets cannot be achieved only by diverting sugarcane / sugar to ethanol therefore, government is also encouraging distilleries to produce ethanol from other feed stocks like grains, sugar beet, sweet sorghum and even secondary sources such as maize and rice.
  • 1,950 million litres
    Ethanol production capacity that will be established through 70 projects that were started two years ago with government assistance of about Rs. 3600 crores. 31 of these projects have been commissioned with 1,020 million litres capacity.
  • 4,680 million litres
    Capacity that will be established in the next 3-4 years through around 185 projects that will set up with the assistance of the Rs. 12,500 crore funding mentioned above.
  • 168 crore litres
    Ethanol likely to be supplied to OMCs for blending with petrol in supply year 2019-20 thereby achieving 4.8% blending levels.
  • 325 crore litres
    Ethanol targeted to be supplied to OMCs for blending with petrol in supply year 2020-21 thereby achieving 8.5% blending levels. Bids of 322 crore litres (289 crore from molasses and 34 crore litre from grains) have already been received in first tender floated by OMCs and in subsequent tenders more quantity from molasses and grain based distilleries will come, thus government will be able to achieve 325 crore litre and 8.5% blending target.
  • 382 crore litres
    Ethanol targeted to be supplied to OMCs for blending with petrol in supply year 2021-22 thereby achieving 10.0% blending levels.