India advances target of 20% ethanol blending in gasoline to 2023
The Indian government on Wednesday brought forward the target date to achieve 20% ethanol blending with gasoline within two years to 2023 to help reduce India’s dependence on expensive petroleum imports, according to an official notification.
“The central government hereby orders oil companies to sell gasoline blended with ethanol with a percentage of ethanol up to 20 percent in accordance with Bureau of Indian Standards specifications, in all states. and Union Territories, “the Petroleum Ministry said in a Gazette notice. “This notification will enter into force as of April 1, 2023”.
Last year, the government set a target of achieving 10 percent ethanol blend in gasoline (10 percent ethanol blended with 90 percent diesel) by 2022 and 20 percent. percent by 2030. Earlier this year, the 20 percent blending target was postponed to 2025. And now it has been further advanced to April 2023.
India is the world’s third largest importer of oil, relying on foreign suppliers to meet more than 85% of its demand. In the current ethanol supply year, which began in October, India plans to mix 10% ethanol with gasoline. Up to 4 billion liters of ethanol will be required to achieve a 10% mixing ratio.
For 20% by 2023, 10 billion (1000 crore) liters will be needed. The sugar industry will divert 6 million tonnes of excess sugar to produce 7 billion liters of required ethanol, while the remaining ethanol will be produced from surplus grains.
Reacting to this, sugar stocks saw some support during the day. However, sugar factories are skeptical of the ethanol requirements to reach the target by 2023. According to the factories, the target of blending 20% ethanol by 2023 is far from real because the factories must double their ethanol capacity.
The current capacity is 425 liter crore and a 50 liter crore capacity is in the works which the candies believe will be operational by the coming season. So, for this year, 325 crore liters of supply is what the factories are planning. So the sweets are expected to reach 8.5 percent blend this year and 10 percent for next year are within reach.
In an effort to increase capacity, the government has also established rules for companies to set up stand-alone ethanol production facilities. It also provided low-interest loans to the plant to increase investments in ethanol.
With text input from PTI.