Ethanol supply is expected to be more than 302 crore litre in 2020-21 supply year ended November, from only 38 crore litres in 2013-14, according to Economic Survey.
The blending of ethanol with petrol is estimated at 8.1 per cent during 2020-21 ethanol supply year (ESY).
Talking about the Ethanol Blended with Petrol (EBP) Programme, the survey said that the government has now set 20 per cent ethanol blending target for mixing ethanol with petrol to be achieved by 2025.
“It is estimated that the blending target at 10 per cent would be achieved during 2022,” it added.
To achieve these targets, the government has allowed production of ethanol from different feed stocks viz B-Hy and C-Hy molasses, cane juice, sugar syrup, sugar and damaged food grains including surplus FCI rice, maize, etc. by the distilleries either attached with sugar mills or standalone.
Financial assistance in the form of interest subvention are also provided to eligible distilleries for augmentation of ethanol production capacity in the country.
“The ethanol supply under the EBP programme, which was only 38 crore litres in Ethanol Supply Year (ESY) 2013-14, has increased to 173.3 crore litres during ESY 2019-20 and is expected to be more than 302 crore litres by the end of ESY 2020-21 to achieve approximately 8.1 per cent blending,” the document said.
The ethanol blending target for ESY 2021-22 is 10 per cent which is to progressively increase to 20 per cent by year 2025.