5 per cent ethanol will be blended with petrol from December

5 per cent ethanol will be blended with petrol from December
In 2009, the Cabinet Committee on Economic Affairs (CCEA) had decided to mix 5 per cent ethanol in petrol but it could not be implemented due to opposition by some sections in the chemical and petroleum sectors. In a new development, CCEA has approved the issue of pricing for bio-ethanol procurement by Oil Marketing Companies (OMCs). The new development is a positive step towards saving around 100 crore litres of fuel every year.
“The 5 per cent mandatory ethanol blending with petrol should be implemented across the country, for which the Ministry of Petroleum & Natural Gas will immediately issue a gazette notification, for the OMCs to implement from the 2012-13 sugar season, effective from 1st December, 2012,” an official release said.
It also explained, “Procurement price of ethanol will be decided henceforth between OMCs and suppliers of ethanol. In case of any shortfall in domestic supply, the OMCs and chemical companies are free to import ethanol.”
It is expected that 5 per cent bio-ethanol will be blended with petrol sold in all the states and union territories of the country.
The Ethanol Blended Petrol (EBP) Programme is presently being implemented in a total of 13 states with blending level of about 2 per cent against a mandatory target of 5 per cent.
A stable EBP programme would ensure sustainable benefits for the sugarcane farmers across the nation. It will ensure an alternative market for the farmers who frequently get adversely affected in case of bumper crop of sugarcane and lack of its demand in the market. It will also provide an incentive to small and medium farmers to increase efforts towards sugarcane crop as better returns would be ensured.
Procurement of ethanol at a price determined by the market will ensure stability. EBP programme not only provides opportunities to sugarcane farmers, but it also ensures the use of ethanol as bio-fuel in a big way which is environment friendly. Besides, to the extent of implementation, this reduces the dependence on imported crude and leads the nation ahead on fuel self sufficiency.

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