Fresh applications invited ethanol projects by center
Recently, the central government has invited fresh applications for ethanol projects till the month of October.
- The Ministry of Consumer Affairs, Food and Public Distribution has decided to open a window for six months.
- Through this, fresh applications will be invited from project supporters for setting up of new distilleries, or expansion of existing distilleries.
- This move will increase the ethanol production capacity. This will help in achieving the target of 20% ethanol blending in petrol by the year
- This will facilitate sugar mills to set up new distilleries or expand their existing distilleries. This will help in conversion of excess sugarcane/sugar into ethanol.
- The move will enable setting up of new grain-based distilleries in ethanol-deficient states. Such states include North Eastern States, Southern States (Tamil Nadu, Andhra Pradesh and Telangana), Bihar, Madhya Pradesh, etc.
- Under the Ethanol Blending Petrol (EBP) program, Oil Marketing Companies (OMCs) are blending ethanol with petrol. Under this program OMCs will blend ethanol (10) up to 10% in petrol by the year
- The central government had earlier set a target of 20% ethanol blending (E20) in petrol by the year In the year 2021, the Central Government amended it and announced to achieve the target of E20 only five years ago i.e. by the year 2025.
- To achieve this goal, financial assistance will be provided to sugar mills and distilleries through interest subvention. Financial assistance will be given with 6% interest subvention or 50% of the bank interest rate (whichever is lower).
Advantages of ethanol blended petrol-
- There will be less dependence on imports.
- Carbon dioxide pollution will be reduced.
- Measures to achieve energy security and self-reliance will improve.
- Agriculture sector will get a boost.
- Employment opportunities will be created.
Source – The Hindu