The Hindu Business Line : `Blended petrol project based on locally produced ethanol'

GREEN FUEL PROGRAMME: The Vice-President, Mr Bhairon Singh Shekhawat (right); the Minister for Petroleum and Natural Gas, Mr Murli Deora; and the IOC Chairman, Mr Sarthak Behuria (left); at the launch of the ethanol-blended petrol filling station in the Capital on Tuesday. — Ramesh Sharma

New Delhi May 15 The entire ethanol blended petrol (EBP) programme — five per cent ethanol with 95 per cent petrol — is primarily based on the ethanol produced within the country. The total ethanol requirement of State-owned oil marketing companies is approximately 5.6 lakh kilolitres per annum in the notified States and Union Territories.

"Based on its availability, the Government may consider introduction of 10 per cent ethanol blending in petrol in future. So far, we have not imported any ethanol and the entire EBP programme is based on ethanol produced within the country," the Petroleum and Natural Gas Minister, Mr Murli Deora said.

The Ministry of Petroleum and Natural Gas had issued notifications for implementing the programme nationwide, except in Jammu and Kashmir, North Eastern states, Andaman and Nicobar, and Lakshadweep where ethanol cannot be made available due to logistical reasons.

With effect from November 2006, supply of EBP commenced initially in Uttar Pradesh, Uttarakhand and subsequently in Maharashtra, Delhi, Karnataka, Tamil Nadu, Goa and Andhra Pradesh. Oil companies have also issued a letter of intent for procurement of ethanol in Bihar and Jharkhand and supplies will commence shortly. "The sugar industry has assured that sufficient quantity of ethanol will be available to the oil companies on a sustained basis and that the EBP programme should be extended on an all-India basis," the Minister said.

Economic impact

Speaking at the launch of the EBP programme in Delhi, the Minister said, "Besides being an environment-friendly fuel, ethanol has a positive economic impact in terms of increased demand for sugarcane, reduction in fuel imports and savings in valuable foreign exchange. Increased demand for ethanol will strengthen rural economics and create more jobs in the rural sector." The programme was first launched in Hyderabad on April 5.

Ethanol-blended petrol is a green fuel that reduces the atmospheric impact of fossil fuels, and is becoming increasingly popular in several countries, including Brazil, the US and Europe.

The first phase of EBP was launched on January 1, 2003 in nine sugarcane-producing states — Maharashtra, Gujarat, Goa, Uttar Pradesh, Haryana, Punjab, Karnataka, Andhra Pradesh and Tamil Nadu — and four union territories — Daman-Diu, Dadra and Nagar Haveli, Puducherry and Chandigarh.

However, due to drought and flood conditions during 2003-04 and 2004-05, availability of ethanol became inconsistent.

With good monsoon during 2005-06, there was a bumper sugarcane crop and ethanol availability increased considerably. Sugar manufacturer associations approached the Ministry for re-launching the EBP programme on an all-India basis.

At the launch function the country's Vice President, Mr Bhairon Singh Shekhawat, inaugurated a petrol and diesel station allotted to the family of Shaheed Matbar Singh Negi, who died while defending the Parliament in December 2001.

Nine petrol pumps have been allotted to the families of those who laid down their lives defending the Parliament. Families of the martyrs of Operation Vijay (Kargil) were awarded 303 petrol stations and 142 LPG distributorships.

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