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ISMA asked government for advanced biofuel policies 

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ISMA asked government for advanced biofuel policies  1
Credit: Business Line

The Indian Sugar and Bio-energy Manufacturers Association (ISMA) has urged the government to come out with advanced biofuel policies to take forward the current ethanol blending programme (EBP) beyond 2025. 

Key Highlights:

  • Suggestions include a subsidy plan of ₹35,000 crore for creation of further 770 crore liters capacity for ethanol production.
  • Ethanol production capacity in India is 1,683 crore litres, which is beyond sufficient to implement a blend of 20%.
  • ISMA’s vision beyond E20 would be found flexibility in the use of ethanol:
    • The use of E100 (hydrous ethanol) in combination with the current E20 blend and adoption of advanced technologies.
    • GST on FFV would be lowered to 5%.
  • ISMA pitches for investment in sustainable aviation fuels, 2G ethanol production, and ethanol to hydrogen conversion.
  • The industry body recommends approval to establish ethanol pumps for sugar biorefineries through Biocentres.

The Ethanol Blended Petrol (EBP) Programme is a government initiative to increase the amount of ethanol blended with petrol in India: 

  • Goals:
    • Blending 10% ethanol with petrol by 2021-22 
    • Blending 20% ethanol with petrol by 2025 

What is Ethanol blending?

  • It is the process of mixing ethanol with gasoline to reduce the use of fossil fuels.

What is ethanol?

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  • Ethanol is a renewable biofuel that’s a byproduct of processing sugarcane, rice husk, or maize. It’s also known as ethyl alcohol.

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