Context:
Union Cabinet approved the revision of Ethanol Procurement Price for Public Sector Oil Marketing Companies (OMCs).
Ethanol Blending Program (EBP):
- Launched in 2003
- Objective – To promote the use of ethanol in petrol, enhancing renewable fuel use in India.
- Ministry: Ministry of Petroleum and Natural Gas
- Progress and Targets: Having achieved the 10% ethanol blending target in 2021-22, the government now aims for a 20% blend by 2025-26, as outlined in the National Policy on Biofuels (2018).
Ethanol:
- A clear, colourless, flammable liquid with a distinct odour, classified as an organic compound.
- Production Methods: Fermentation of sugars by yeast, a common method in alcoholic beverage production, or synthesized chemically, such as through the hydration of ethylene.
- Primary Uses:
- Beverages: Ethanol is the alcohol present in drinks like beer, wine, and spirits, consumed socially worldwide.
- Fuel: It serves as a biofuel, often mixed with gasoline to create ethanol-blended fuels.
- Industrial Solvent: Ethanol’s solvent properties make it valuable in the production of pharmaceuticals, perfumes, and other products.
- Medical and Laboratory: Ethanol is used as an antiseptic, disinfectant, and preservative in medical and laboratory settings.
- Chemical Feedstock: It is also a precursor in the production of various chemicals.
Other related Initiatives:
- Ethanol Procurement: The government has approved the procurement of ethanol from sugarcane-based raw materials, surplus rice, and maize through the Food Corporation of India, ensuring a diversified supply for ethanol production.
- National Policy on Biofuels: Introduced in 2018, this policy sets an indicative target of achieving a 5% biodiesel blend in diesel by 2030, supporting broader biofuel adoption.
- Differential Pricing: To compensate sugar mills for revenue losses due to reduced or zero sugar production, the government established higher prices for ethanol derived from B-heavy molasses and whole sugarcane syrup.
- Reduced GST: The Goods and Services Tax (GST) on ethanol designated for the Ethanol Blended Petrol (EBP) Program has been lowered from 18% to 5%, reducing costs and encouraging ethanol use.
- Interest Subvention Scheme: This scheme supports the expansion of ethanol production capacity by providing financial incentives, facilitating year-round ethanol production
Source: TH
Previous Year Question
According to India’s National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels?
1. Cassava
2. Damaged wheat grains
3. Groundnut seeds
4. Horse gram
5. Rotten potatoes
6. Sugar beet
Select the correct answer using the code given below:
[UPSC Civil Services Exam – 2020 Prelims]
(a) 1, 2, 5 and 6 only
(b) 1, 3, 4 and 6 only
(c) 2, 3, 4 and 5 only
(d) 1, 2, 3, 4, 5 and 6
Answer: (a)