Govt Approves 35% Bio-Bitumen Mixing to Save Rs 100 billion in Forex
ECONOMY & POLICY

Govt Approves 35% Bio-Bitumen Mixing to Save Rs 100 billion in Forex

Nitin Gadkari, Union Road Transport Minister, announced that the government will permit the inclusion of up to 35 per cent lignin in petroleum-based bitumen, a significant portion of which is imported. Bitumen, a black substance derived from the distillation of crude oil, is commonly used in road construction and roofing.

Gadkari noted that India possesses the largest road network globally, with 90 percent of roads utilising bituminous layers. In the fiscal year 2023-24, bitumen consumption reached 88 lakh tonnes, and it is projected to rise to 100 lakh tonnes in 2024-25. He mentioned that 50 per cent of this bitumen is imported, leading to an annual import cost between Rs 250 and 300 billion.

He highlighted that farmers are now contributing not just to food production but also to energy production. The Central Road Research Institute (CRRI) and the Indian Institute of Petroleum in Dehradun have developed bio-bitumen from paddy straw. Gadkari expressed concerns about air pollution in Delhi caused by stubble burning and explained that one tonne of paddy straw can produce 30 per cent bio-bitumen, 350 kg of biogas, and 350 kg of biochar. He indicated that substituting up to 35 per cent bio-bitumen for conventional bitumen has been successful, with potential foreign exchange savings of Rs 100 billion. A patent for this innovation has already been filed.

Additionally, Gadkari revealed that while petroleum-based bitumen costs Rs 50 per kg, bio-bitumen derived from biomass (rice straw) is priced at Rs 40 per kg. He also mentioned that the Indian Oil Corporation has a project in Panipat to produce 100,000 litres of ethanol per day from rice straw, along with 150 tonne of bio-bitumen daily and 88,000 tonne of bio-aviation fuel annually.

Nitin Gadkari, Union Road Transport Minister, announced that the government will permit the inclusion of up to 35 per cent lignin in petroleum-based bitumen, a significant portion of which is imported. Bitumen, a black substance derived from the distillation of crude oil, is commonly used in road construction and roofing. Gadkari noted that India possesses the largest road network globally, with 90 percent of roads utilising bituminous layers. In the fiscal year 2023-24, bitumen consumption reached 88 lakh tonnes, and it is projected to rise to 100 lakh tonnes in 2024-25. He mentioned that 50 per cent of this bitumen is imported, leading to an annual import cost between Rs 250 and 300 billion. He highlighted that farmers are now contributing not just to food production but also to energy production. The Central Road Research Institute (CRRI) and the Indian Institute of Petroleum in Dehradun have developed bio-bitumen from paddy straw. Gadkari expressed concerns about air pollution in Delhi caused by stubble burning and explained that one tonne of paddy straw can produce 30 per cent bio-bitumen, 350 kg of biogas, and 350 kg of biochar. He indicated that substituting up to 35 per cent bio-bitumen for conventional bitumen has been successful, with potential foreign exchange savings of Rs 100 billion. A patent for this innovation has already been filed. Additionally, Gadkari revealed that while petroleum-based bitumen costs Rs 50 per kg, bio-bitumen derived from biomass (rice straw) is priced at Rs 40 per kg. He also mentioned that the Indian Oil Corporation has a project in Panipat to produce 100,000 litres of ethanol per day from rice straw, along with 150 tonne of bio-bitumen daily and 88,000 tonne of bio-aviation fuel annually.

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