[Answered] Discuss the challenges in the way of achieving intended objectives under India’s ethanol fuel blending targets. Also suggest some measures to achieve targets.

The government of India has advanced the target for 20 per cent ethanol blending (E20) in petrol to 2025 from 2030. According to NITI Aayog, this will help in saving ₹30,000 crore of foreign exchange per year, increased energy security, lowered carbon emissions, better air quality, self-reliance, better use of damaged food-grains, increased farmers’ incomes and greater investment opportunities.

Challenges:

• There is a lack of adequate quality feedstock and sporadic availability of ethanol across the country. Feedstock supply is primarily concentrated in sugar-producing states at present.
• A 10% blending of petrol does not require major changes to engines but a 20% blend could require some changes and may even drive up the prices of vehicles.
• A greater percentage of blending could also mean more farmland being diverted towards water-intensive crops such as sugar cane, which the government currently subsidizes.

Measures:

• Augmenting Ethanol producing capacity: According to NITI Aayog, to achieve 20% ethanol blending, India has to augment both the sugarcane-based and grain-based ethanol production capacities by 78% and 187% respectively.
• Uniform availability of ethanol blends: All the states have to implement the amended Industries Development and Regulations Act for facilitating the Inter-state movement of ethanol.
• Faster environmental clearances: Currently, ethanol production plants/distilleries fall under the “Red category”. They require environmental clearance under the Air and Water Acts for new projects and expansion of existing projects. The government can remove them from the red category. This will facilitate more ethanol production plants/distilleries.
• Pricing of Ethanol blended petrol: For better acceptability of higher ethanol blends in the country, the retail price of blended petrol should be lower than normal petrol. The government can consider providing tax breaks on ethanol.

As the second largest global producer of sugarcane, India has significant potential to use domestically produced ethanol which will certainly reduce dependence on crude oil imports. This new initiative is also part of measures to improve energy security and self-sufficiency measures will give an impetus to Prime Minister’s vision of India becoming ‘energy independent’ by 2047.