New Delhi

Union Minister for Petroleum and Natural Gas, Hardeep Puri, has made a significant announcement regarding the stability of ethanol prices, providing reassurance to the industry. This declaration was made during his address at the IFGE's India Bio-Energy and Tech Expo held in New Delhi. 

Advertisment

Minister Puri highlighted the government's ongoing commitment to maintaining price stability and ensuring remunerative prices for ethanol suppliers. This policy has had a positive impact on sugarcane farmers, reducing their pending dues. Thereafter, he talked about the government's dedication to promoting alternative fuels, with a particular focus on ethanol, for future automotive applications. 

Advertisment

In line with the dual objectives of reducing pollution and enhancing energy security, the government has taken proactive steps by establishing Second Generation (2G) refineries. These facilities are designed to produce ethanol from alternative sources.

For instance, a refinery in Panipat, Haryana, utilises stubble (parali) as a feedstock, while another in Nomaligarh, Assam, employs bamboo. Minister Puri pointed out that these initiatives are not only addressing environmental concerns but also empowering farmers, transforming them from "Annadatas" (food providers) to "Urjadatas" (energy providers). 

Advertisment

The Minister went on to celebrate the remarkable success of India's energy blending program. He shared impressive statistics, noting that the ethanol blending percentage has seen a substantial increase from a mere 1.53 per cent in 2014 to an impressive 15 per cent in 2024. Encouraged by this achievement, the government has revised its timeline for reaching the 20 per cent ethanol blending target. Originally slated for 2030, this goal has been advanced by five years and is now expected to be achieved by October 2025. Minister Puri expressed confidence in meeting this accelerated timeline. 

Puri also elaborated on the multiple benefits that India's ethanol blending program has yielded over the past decade. The advantages he spoke of included: 

1. Foreign exchange savings: From 2014 to July 14, 2024, the country has saved INR 99,014 crores in foreign exchange. 

2. Environmental impact: Carbon dioxide emissions were reduced by 519 lakh metric tonnes during the same period. 

3. Energy independence: Crude oil substitution reached 173 lakh metric tonnes. 

4. Economic benefits: Ethanol Manufacturing Companies (EMCs) have paid INR 1,45,930 crores to distillers, while farmers have received INR 87,558 crores. 

 The Minister also commended the automobile industry for its support in facilitating the transition to alternative fuels. He praised manufacturers for producing new vehicles that are compatible with E20 fuel (20 per cent ethanol blend) and for developing retrofit kits to enable older vehicles to use these transition fuels. 

This comprehensive update from Minister Puri underscores the government's multifaceted approach to promoting ethanol as a key component of India's energy strategy, addressing environmental concerns, supporting farmers, and fostering innovation in the automotive sector.