6th June, 2002
Ministry Of Petroleum & Natural Gas  


RAM NAIK APPROVES Rs. 7.26 CRORE FOR R & D IN ETHANOL BLENDING WITH PETROL AND DIESEL


Shri Ram Naik, Minister of Petroleum & Natural Gas, has sanctioned a proposal of Rs. 7.26 crore for undertaking Research & Development (R&D) Studies for blending ethanol with petrol and diesel. This includes a grant of Rs.4.01 crore for R&D studies using ethanol-diesel blends on Indian engines/vehicles. An amount of Rs.3.25 crore is also earmarked for R&D studies using ethanol-gasoline (petrol) blends including the study of feasibility to blend 10% of ethanol with gasoline. These funds will be provided by the Oil Industry Development Board (OIDB).

The R&D Project aims at making use of sugarcane molasses for producing ethanol in the country which will help save foreign exchange by reducing the import dependence of the country for meeting its requirements of hydrocarbons. At present, about 70 per cent of our requirement of crude oil is met by imports. Moreover the blending of ethanol helps better combustion of fuel as it acts as oxygenate thereby reducing emission of pollutants from vehicles. The R & D Projects are being implemented by R&D Centre of Indian Oil Corporation (IOC) to establish the effect of using ethanol-gasoline/diesel blend. The R&D Studies in this regard will help to know sustainability in Indian conditions, effect on quality of emission, cost of alcohol, etc. Efforts are being made to get approval of Bureau of Indian Standards (BIS) to blend ethanol in petrol upto 10 per cent as at present ethanol blending in petrol is allowed upto 5 per cent as per BIS Specification.

The Government has also signed a Memorandum of Understanding (MOU) with Brazil on 8.4.2002 for sharing of technology, information, experience, consultancy, etc., in blending of ethanol with petrol and diesel. Brazil and USA are leading countries in the use of ethanol-blended fuels.

It may be recalled that the use of ethanol for blending with petrol/diesel is being encouraged by the Government in view of its benefits to the country in the form of reduction in import dependence, reduction in pollutants from vehicular emissions and benefit to the farmers who would get better returns on the sugarcane produce. The Government has already taken an in-principle decision to allow use of 5 per cent ethanol for blending with petrol throughout the country in two phases. After successful implementation of three pilot projects (two in Maharashtra at Manmad and Miraj and one in U.P. at Bareilly), six more pilot projects have been approved. These include three in U.P. at Gonda, Kanpur (Panki) and Najibabad, two in Punjab at Bhatinda and Pathankot and one in Andhra Pradesh at Rajamundhry. These Pilot Projects are part of the first phase of Government’s endeavour to cover the entire country with the supply of ethanol blended petrol. During the first phase eight States which include Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Punjab, Tamil Nadu and Uttar Pradesh would be covered while the rest of the country would be covered in the second phase.