MANU/PIBU/4493/2021

Department/Board : Press Information Bureau

Date : 10.11.2021

Cabinet approves mechanism for procurement of ethanol by Public Sector Oil Marketing Companies under Ethanol Blended Petrol programme

The Cabinet Committee on Economic Affairs chaired by Prime Minister, Shri Narendra Modi, has given its approval for fixing higher ethanol price derived from different sugarcane based raw materials under the EBP Programme for the forthcoming sugar season 2021-22 during ESY 2021-22 from 1st December 2021 to 30th November 2022.

Approval is also given for the following:

(i) The Price of ethanol from C heavy molasses route be increased from Rs. 45.69 per litre to Rs. 46.66 per litre,

(ii) The price of ethanol from B heavy molasses route be increased from Rs. 57.61 per litre to Rs. 59.08 per litre,

(iii) The price of ethanol from sugarcane juice, sugar / sugar syrup route be increased from Rs. 62.65 per litre to Rs. 63.45 per litre,

(iv) Additionally, GST and transportation charges will also be payable.

(v) Government has decided that Oil PSEs should be given the freedom to decide the pricing for 2G ethanol as this would help in setting up advanced biofuel refineries in the country. It is important to note that grain-based ethanol prices are currently being decided by Oil Marketing Companies (OMCs) only.

The approval will not only facilitate the continued policy of the Government in providing price stability and remunerative prices for ethanol suppliers, but will also help in reducing the pending arrears of Cane farmers, dependency on crude oil imports and will also help in savings in foreign exchange and bring benefits to the environment.

The decision to allow Oil PSEs to decide the price of 2G ethanol would facilitate setting up advanced biofuel refineries in the country.

All distilleries will be able to take benefit of the scheme and large number of them are expected to supply ethanol for the EBP Programme.

Government has been implementing Ethanol Blended Petrol (EBP) Programme wherein Oil Marketing Companies (OMCs) sell petrol blended with ethanol up to 10%. This programme has been extended to whole of India except Union Territories of Andaman Nico........