Blending bio-fuels to the extent of 10 per cent with petrol and 5 per cent with diesel can result in annual savings of between Rs 8,000 crore and Rs 12,000 crore, says a study jointly done by the Confederation of Indian Industry and consultants A T Kearney.

The study-report, titled ‘Cost-effective green mobility’, released here today, however cautions that “a few challenges need to be overcome to achieve this’’.

Some of these are making available sufficient bio-fuels, the danger of damage to vehicles by inconsistent blending, and ensuring that forest or otherwise useful lands are not diverted for cultivating bio-fuel crops.

The “10 per cent ethanol” blending or E-10 will result in emission abatement of 12 million tonnes of carbon dioxide equivalent, the report says.

The study, which went into the economics of the overall reduction in all kinds of emissions, says that it will cost the country Rs 9,000-12,000 crore to achieve about 100 mt reduction in carbon dioxide by 2020, over the “base-case” of about 500 mt by that year.

It calls upon the Government to “do its part” by offering tax breaks, subsidising green technologies and investing in infrastructure improvements.

Moreover, the study says there will be “substantial social and health benefits to the nation beyond the economic implications’’.

ramesh.m@thehindu.co.in

(This article was published on March 8, 2013)
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