India Advances 20% Ethanol Blending Target To 2025-26
The Union cabinet has approved amendments to the National Policy on Biofuels, 2018.
India has advanced the target for blending 20% ethanol in petrol by five years to augment production of the biofuel and cut imports of petroleum products.
The cabinet, at its meeting on Wednesday, has approved to advance the ethanol blending target to 2025-26 from the previous 2030 deadline, according to a government statement. Currently, about 10% of ethanol is blended in petrol.
This is part of the Union cabinet’s approval to amendments to the National Policy on Biofuels, 2018.
The other approved amendments are:
To allow more feedstock for production of biofuels.
To promote the production of biofuels in the country under ‘Make in India’, from units located in special economic zones/export-oriented units.
To add new members to the NBCC.
To grant permission for export of biofuels in specific cases.
To delete/amend certain phrases in the policy, in line with decisions taken during the meetings of NBCC.
In a move to increase adoption of blended fuel, the Union Budget 2022 levied an additional differential excise duty tariff on unblended fuel of Rs 2 a litre from Oct. 1 this year.
The amendments are expected to “attract and foster developments of indigenous technologies which will pave the way for Make in India drive and thereby generate more employment”, the statement said.
The addition of feedstock for biofuel production is also expected to add impetus to local production and reduce the country’s energy dependency.