Production of fuel-grade ethanol & its supply to OMCs increased by 8 times from 2013-14 to 2020-21

New Delhi: The Union Minister of State for Consumer Affairs, Food and Public Distribution, Ms. Sadhvi Niranjan Jyoti in a written reply to a question in Rajya Sabha today informed about the State-wise list of supplied quantities of ethanol, which were produced by distilleries in the country and supplied to Oil Marketing Companies (OMCs) for blending with petrol along with the blending percentage achieved under Ethanol Blended with Petrol (EBP) Programme during last three Ethanol Supply Years (ESY) (Dec-Nov) 2018-19, 2019-20, 2020-21 and current ESY 2021-22.

The supply of ethanol to OMCs was only 38 crore litres with blending levels of only 1.53 % in ESY 2013-14. Production of fuel-grade ethanol and its supply to OMCs has increased by 8 times from 2013-14 to 2020-21.  In ESY 2020-21 (Dec-Nov), 302.30 crore litres of ethanol has been supplied to OMCs thereby achieving 8.1% blending levels, which is historically highest. In the current ESY 2021-22, about 113 crore liters of ethanol has been blended with petrol till 13.03.2022 thereby achieving 9.45% blending. In the current ESY 2021-22,10% blending target is likely to be achieved. The Government has fixed a 20% blending target for the year 2025 which is also likely to be achieved.

 The Central Government has taken various measures in the past 3 years to increase the production of ethanol to meet the blending target which is enumerated as under:

1. Extending financial assistance in the form of interest subvention @ 6% per annum or 50% of rate of interest charged by banks/financial institutions whichever is lower for five years including one year moratorium;
2. The Government has been fixing remunerative prices of ethanol produced from different feed-stocks for supply of ethanol to OMCs for every Ethanol Supply Year;
3. Amended the Industries (Development & Regulation) Act, 1951 to ensure free movement of ethanol in the country;
4. Reduced Goods & Service Tax (GST) on ethanol meant for Ethanol Blended with Petrol (EBP) Programme from 18% to 5%;
5. FCI Rice & maize also allowed as feedstock;
6. Interest subvention scheme extended to grain based distilleries;

• vii. Standard Operating Procedures (SOPs) issued by banks for faster loans sanctioning;

8. Environmental Clearance procedures simplified by Ministry of Environment, Forest & Climate Change;
9. Enhancement of storage capacities to store ethanol started by Oil Marketing Companies;
10. Notification for 20% blending from April, 2023 issued;
11. Use of automotive fuel E12 (12% ethanol with 88% petrol) & E15 notified;

• xii. Notification for direct sale of E100 by OMCs issued;

13. E20 material compatible vehicles being launched from April, 2023 and E20 engine compatible vehicles being launched from April, 2025;
14. Flexi-fuel engine & components (capable of running up to E85 fuel) included under Production Linked Incentive (PLI) scheme.

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ANNEXURE

Note:     Against some states mentioned above, the quantity of ethanol supplied/blended has been indicated as Nil whereas blending percentage has been indicated . This is due to the fact that in such states, instead of supplying ethanol for blending, directly blended fuel was supplied.