• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Priyanka Vyas

New Delhi, Aug. 21 Government’s plans to make 10 per cent blending of ethanol in petrol from October onwards is unlikely to take off amid several issues, including availability and pricing.

“There are lot of issues including availability. It is unlikely to be implemented by October. However, what is important is the direction in which the Government is making efforts,” Mr Deepak Gupta, Secretary, Ministry of New and Renewable Energy told Business Line at the sidelines of the renewable energy conference organised here.

Declining to elaborate, he said that the ministry was reviewing the proposal.

The current norms permit blending of up to 5 per cent of ethanol in petrol. Last year, the Cabinet Committee on Economic Affairs gave its approval to make 10-per cent blending mandatory from October 2008, except in the exempted areas such as Jammu and Kashmir and north-east States.

As it is India has been slow in implementing biofuel policy, unlike countries such as Brazil and the US that have cars running on up to 85 per cent ethanol and 15 per cent petrol. The increased level of ethanol in fuel has also shot up the prices of sugar, one of the major sources from where it is produced. Prices of sugar in the domestic market have also spiralled due to shortages in production and stand marginally lower compared to global markets. Hence, in the prevailing scenario of low level of sugar production, the policy could be further delayed.

Moreover, according to industry officials the Government has also not yet issued a formal notification to the oil companies to procure the necessary quantum of ethanol from the sugar mills to meet the demand.

While the current five per cent blending of ethanol is optional for the States, a Group of Ministers headed by the External Affairs Minister, Mr Pranab Mukherjee, has recommended that the 10 per cent ethanol be made mandatory for all States barring Jammu and Kashmir, the north-eastern States, Andaman and Nicobar Islands and Lakshadweep.

The ethanol that will be blended with petrol will be produced from molasses, unlike in countries such as Brazil where it produced directly from sugarcane.

More Stories on : Sugar | Non-conventional Energy | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line