New Delhi, April 20: Amid uncertainties in the global oil market due to the Middle East crisis, the Indian government is rapidly advancing efforts to promote Flex Fuel Vehicles (FFVs). The aim is to increase the use of ethanol in the transport sector and reduce dependency on oil imports.
Reliable sources indicate that the Ministry of Petroleum and Natural Gas (MoPNG) is set to hold a crucial meeting to develop a roadmap for adopting FFVs in India.
This meeting, chaired by the additional secretary of the MoPNG, will include representatives from major oil marketing companies (OMCs) such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum, along with automobile manufacturers and other stakeholders.
Discussions are expected to focus on necessary policies to enhance the blending of ethanol in fuel, moving beyond current regulations.
Currently, India has implemented the E20 program, which allows for a 20% ethanol blend in petrol. The government is now considering promoting FFVs that can operate on blends of up to 85% ethanol.
This initiative is part of the government’s strategy to strengthen energy security, as India imports over 85% of its crude oil. Fluctuations in the global market directly impact the country’s economy.
Additionally, the government has revised its target for blending 20% ethanol in petrol from 2030 to 2025-26. Under the Ethanol Blended Petrol (EBP) program, the government is encouraging the sale of petrol blended with ethanol, with public oil companies playing a significant role.
To boost ethanol production, the government has taken several steps, including expanding the range of feedstock and developing clusters to increase maize production near ethanol plants.
Moreover, the government has approved the diversion of 5.2 million metric tons of rice from the Food Corporation of India (FCI) for ethanol production. It has also permitted the diversion of 4 million metric tons of sugar for ethanol production for the 2024-25 period.
To promote ethanol production and supply, the government has set a fixed price for ethanol purchases under the EBP program and reduced the GST rate on ethanol to 5%.
Leave a Comment