Context:
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?
- Ethanol is a renewable biofuel that’s a byproduct of processing sugarcane, rice husk, or maize. It’s also known as ethyl alcohol.
Also Read: India shortens down its tar
