NitiAayog to set up Methanol Economy Fund 

NitiAayog to set up Methanol Economy Fund 

Context

NitiAayog plans to set up a Methanol Economy Fund worth Rs 4,000-5,000 crore to promote production and use of the clean fuel. The government think is aiming at generation of the fuel by converting high ash content coal into methanol and such a plant is expected to be set up by Coal India.

Methanol fuel

We are going to use methanol fuel, which is cheaper, safer and pollution free

Our priority is to set up methanol production plants using coal and stranded gas assets

Methanol production in India

In India methanol can be produced at Rs 16-21 per litre.

Methanol can be used as an energy producing fuel, transportation fuel and cooking fuel, cutting down India’s oil import bill by an estimated 20 per cent over the next few years

Cabinet Note soon

NitiAayog plans to move a Cabinet note soon on the methanol economy and the plans to set up production plants

Future Plans

It expects that two plans can be commissioned in the next 3-4 years.

Better than CNG

Unlike CNG, using methanol as a transportation fuel would require minimal alteration in the vehicles.

China largest producer of methanol

China is the world’s largest producer of methanol, he added

Rail engines

The Aayog is also working on converting certain diesel-powered rail engines to work on methanol

Boats and ships also on methanol

Plans are underway to ensure that boats and ships used in the inland waterways initiative are also run on methanol.

Buses also

The Aayog is in discussion with companies such as Volvo and Tata to produce buses running on methanol.