1st August, 2002
Ministry of Petroleum & Natural Gas  


BLENDING OF ETHANOL WITH PETROL


LOK SABHA

Shri Ram Naik, Minister of Petroleum & Natural Gas informed the Lok Sabha in a written reply to a question today that the Ministry of Petroleum & Natural Gas have decided in principle to supply 5% ethanol doped petrol in the eight sugarcane producing States viz. Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Punjab, Tamil Nadu and Uttar Pradesh in the first phase with effect from 1.1.2003 and in the rest of the country in the second phase. "No computation of foreign currency saving is possible at this stage", he added.

Shri Naik said a Memorandum of Understanding was signed between Government of India and Government of Brazil on 8th April 2002 which provides for sharing of technology by Brazil for blending of ethanol with petrol/diesel and giving consultancy on various related aspects. R&D studies are in progress for blending of ethanol with diesel. Petrol is not imported at present. However, foreign exchange could be earned by export of petrol rendered surplus through its blending with ethanol.