Govt Revises Ethanol Prices to Boost Blending
OIL & GAS

Govt Revises Ethanol Prices to Boost Blending

The Cabinet Committee on Economic Affairs (CCEA) has approved a revision in ethanol procurement prices for Public Sector Oil Marketing Companies (OMCs) under the Ethanol Blended Petrol (EBP) Programme for the Ethanol Supply Year (ESY) 2024-25, running from November 1, 2024, to October 31, 2025. The revised ex-mill price for ethanol derived from C Heavy Molasses (CHM) has been set at Rs 57.97 per litre, up from Rs 56.58 per litre.

This move aims to provide stable and remunerative pricing for ethanol suppliers while reducing India's dependency on crude oil imports, leading to foreign exchange savings and environmental benefits. The price hike of 3% is expected to ensure adequate ethanol availability, supporting the government's blending targets.

Rising Ethanol Blending in Petrol The Ethanol Blended Petrol (EBP) Programme, implemented across the country, promotes the use of cleaner and renewable fuel alternatives. Currently, OMCs blend ethanol with petrol up to 20%, significantly cutting down crude oil imports. Over the past decade, ethanol blending has saved India more than Rs 1.13 trillion in foreign exchange and replaced about 193 lakh metric tonnes of crude oil.

Ethanol procurement by OMCs has surged from 380 million litres in ESY 2013-14 to 7.07 billion litres in ESY 2023-24, achieving an average blending rate of 14.6%. The government has also advanced its target of 20% ethanol blending from 2030 to ESY 2025-26, with OMCs aiming for 18% blending in ESY 2024-25.

Infrastructure and Policy Support To meet the rising demand, India has expanded its ethanol distillation capacity to 17.13 billion litres annually. Other policy measures include:

Long-Term Off-Take Agreements (LTOAs) to establish Dedicated Ethanol Plants (DEPs) in ethanol-deficit states. Conversion of single-feed distilleries to multi-feed units. Availability of E-100 and E-20 fuels. Launch of flex-fuel vehicles. These initiatives enhance ease of doing business and align with the Atmanirbhar Bharat vision.

Boost to Investments and Employment The visibility provided by the EBP Programme has attracted investments across the country, leading to the establishment of greenfield and brownfield distilleries, improved storage, and logistics facilities. This has created employment opportunities and ensured timely payments to sugarcane farmers.

With a structured ethanol pricing policy and continuous infrastructure expansion, India is on track to achieving its ethanol blending targets, reinforcing energy security, environmental sustainability, and economic self-reliance.

The Cabinet Committee on Economic Affairs (CCEA) has approved a revision in ethanol procurement prices for Public Sector Oil Marketing Companies (OMCs) under the Ethanol Blended Petrol (EBP) Programme for the Ethanol Supply Year (ESY) 2024-25, running from November 1, 2024, to October 31, 2025. The revised ex-mill price for ethanol derived from C Heavy Molasses (CHM) has been set at Rs 57.97 per litre, up from Rs 56.58 per litre. This move aims to provide stable and remunerative pricing for ethanol suppliers while reducing India's dependency on crude oil imports, leading to foreign exchange savings and environmental benefits. The price hike of 3% is expected to ensure adequate ethanol availability, supporting the government's blending targets. Rising Ethanol Blending in Petrol The Ethanol Blended Petrol (EBP) Programme, implemented across the country, promotes the use of cleaner and renewable fuel alternatives. Currently, OMCs blend ethanol with petrol up to 20%, significantly cutting down crude oil imports. Over the past decade, ethanol blending has saved India more than Rs 1.13 trillion in foreign exchange and replaced about 193 lakh metric tonnes of crude oil. Ethanol procurement by OMCs has surged from 380 million litres in ESY 2013-14 to 7.07 billion litres in ESY 2023-24, achieving an average blending rate of 14.6%. The government has also advanced its target of 20% ethanol blending from 2030 to ESY 2025-26, with OMCs aiming for 18% blending in ESY 2024-25. Infrastructure and Policy Support To meet the rising demand, India has expanded its ethanol distillation capacity to 17.13 billion litres annually. Other policy measures include: Long-Term Off-Take Agreements (LTOAs) to establish Dedicated Ethanol Plants (DEPs) in ethanol-deficit states. Conversion of single-feed distilleries to multi-feed units. Availability of E-100 and E-20 fuels. Launch of flex-fuel vehicles. These initiatives enhance ease of doing business and align with the Atmanirbhar Bharat vision. Boost to Investments and Employment The visibility provided by the EBP Programme has attracted investments across the country, leading to the establishment of greenfield and brownfield distilleries, improved storage, and logistics facilities. This has created employment opportunities and ensured timely payments to sugarcane farmers. With a structured ethanol pricing policy and continuous infrastructure expansion, India is on track to achieving its ethanol blending targets, reinforcing energy security, environmental sustainability, and economic self-reliance.

Next Story
Infrastructure Transport

NHAI to Upgrade Tamil Nadu Highways

To reduce congestion on key national highways in Tamil Nadu, the National Highways Authority of India (NHAI) has planned capacity upgrades for at least eight highway stretches. The improvements will include bypasses, flyovers, and four-laning in Salem, Coimbatore, Tiruppur, Nilgiris, and Cuddalore. NHAI has invited tenders to appoint consultants for preparing detailed project reports (DPRs) on these expansions. The affected highways include NH-181, NH-81, NH-532, NH-85, and NH-136. Proposed Upgrades Across Highways - NH-181 (Coimbatore-Gundlupet Route): This stretch will see four bypasses an..

Next Story
Infrastructure Transport

Ludhiana-Bathinda Highway Revived as NHAI Invites Bids

The Ludhiana-Bathinda highway project, initially stalled due to land acquisition issues, has been revived as the National Highways Authority of India (NHAI) invites fresh bids to resume construction. The project, part of the Ludhiana-Ajmer Economic Corridor, is estimated to cost Rs 24.61 billion and will be executed in two phases. Package 1, covering 30.03 km, has a budget of Rs 9.06 billion, while Package 2, spanning 45.25 km, is set to cost Rs 15.55 billion. The NHAI had previously withdrawn the project due to unavailability of land. However, intervention from Union Minister for Road Trans..

Next Story
Infrastructure Urban

Dilip Buildcon Wins Rs 460M Arbitration

Infrastructure major Dilip Buildcon has secured an arbitration award of Rs 460 million against the National Highways Authority of India (NHAI) over delays and breaches during the execution of a highway project in Karnataka. The dispute pertains to the Rehabilitation and Upgradation of the Kerala Border to Kollegala Section of NH 212, awarded to Dilip Buildcon under an Engineering, Procurement, and Construction (EPC) agreement dated June 6, 2014. The project involved two-lane expansion with paved shoulders and four-lane development under the National Highways Development Project (NHDP) Phase IV..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?