Keep the price of gasoline mixed with ethanol lower to press the switch to clean the fuel: Government panel | India News

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Maharashtra Government Announces Unlocking Plan |  India News


NEW DELHI: A government-appointed panel recommended the Center to keep the price of gasoline blended with ethanol lower than regular gasoline in view of its lower calorific value and also to incentivize people to opt for clean fuel.
The expert committee on the “Ethanol Roadmap” has said: “For better acceptability of ethanol blends in the country, the retail price of these fuels should be lower than normal gasoline to compensate for the reduction in calorific value and incentivize the switch to blended fuel. The government may consider tax breaks on ethanol as fuel. ”
He has also said that to provide predictability and encourage investment by expanding entrepreneurs and new ethanol capabilities, the government can design and declare a minimum price of ethanol for five years with an escalation clause for the purchase by companies of oil marketing.
According to estimates, the total ethanol supply for this year is set at 323 million liters and the panel of experts has estimated that India would need 1,016 million liters in 2025 to meet the requirement of a 20% ethanol blend in gasoline for that year. This means that total ethanol production from all sources must increase at least three times in the next four years.
The panel in its report has said that it intends to expand India’s current ethanol production capacity from 426 million liters derived from molasses-based distilleries and 258 million liters from grain-based distilleries to 760 liters of core and 740 liters. liters of core, respectively. “This would be enough to produce 1016 million liters of ethanol needed for the ethanol-blended gasoline program and 334 basic liters for other uses. This will require 60 lakh tonnes of sugar and 165 lakh tonnes of grains per year in ethanol supply year 2025 to be used to produce ethanol, which the country can support, ”he said.
He has recommended that special efforts are needed to attract investors to the Northeast to take advantage of the interest subsidy scheme and build adequate distillation capacity and avoid long-distance ethanol transportation. The panel has also said that a system for one-stop-shop spaces can be formulated to provide quick spaces for new and expansion projects for ethanol production.
For a smooth movement of ethanol, the committee recommended that the product intended to be mixed with gasoline, which is denatured, must have an unrestricted movement and must be free from the control of the states. Currently, only 14 states have implemented these amended provisions.

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