(T.E.T)
Ethanol blending in petrol has risen to 8.1% in the ethanol year 2020-21, up from 5% in the previous year and 1.5% in 2013-14, thanks to a raft of policy measures that helped increase supply through a combination of assured purchases at government-set remunerative prices and interest subsidy for production capacity expansion.
The government has been aiming to increase the share of biofuels in the transportation sector to cut the country’s dependence on oil imports, which account for 85% of the domestic needs. Petrol makes up 15% of total oil consumption in the country and therefore a 10% substitution by ethanol could bring down oil imports by 1.5 percentage points.
As more supplies become available, the blending ratio is expected to reach 10% this ethanol year, which began last month. This is about two decades after ethanol blending was piloted in the country. “Limited supply was the biggest constraint. The government has addressed this by providing a supportive policy regime,” said Abinash Verma, director general, Indian Sugar Mills Association (ISMA).
