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Ministry informed that Ethanol blending rate has increased from 1.53% in 2013-14 to an estimated 14.60% in 2023-24.
About EBP Programme
- Objective: Launched in 2003 to promote blending of ethanol in petrol.
- Target: 20% ethanol blending in petrol by 2025-26, advanced from the initial timeline of 2030.
- Initiatives facilitating EBP Programme
- National Policy on Biofuels (2018)
- Ethanol Interest Subvention Schemes (EISS) launched to foster the establishment of Dedicated Ethanol Plants (DEPs).
- Reduction in GST on ethanol meant for EBP Programme from 18% to 5%.
- Re-introduction of Administered Price Mechanism.
- Amendment to Industries (Development & Regulation) Act, 1951 for smooth movement of ethanol across country.
Key Benefits of the EB
- Foreign Exchange Savings: Rs 1.08 trillion saved since 2014 due to reduced reliance on imported crude oil with 18.5 million tonnes of crude oil substituted with ethanol.
- Environment Sustainability: 55.7 million metric tonnes of carbon emissions reduced.
- Resolving Key Issues of Sugar Industries: Ethanol production helped sugar factories to reduce its surplus sugar inventory and generate revenue early to clear the dues of cane farmers.
What is Ethanol?
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