PROGRESS TOWARDS FIRST PHASE ETHANOL-PETROL BLENDING PROGRAMME REVIWED

MEETING OF THE MINISTERS OF EXCISE AND SUGARCANE DEVELOPMENT OF STATES AND UTs

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Shri Ram Naik, Minister of Petroleum & Natural Gas along with Shri Sharad Yadav, Minister of Consumer Affairs and Public Distribution and Shri Hukum Deo Narayan Yadav, Minister of State for Agriculture reviewed here today the preparedness of States and Union Territories, oil companies and other agencies towards moving over to the era of 5% blending of ethanol with petrol w.e.f. 1^st January, 2003 in the first phase. Covering nine sugarcane growing States and four contiguous Union Territories, the first phase States are Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Punjab, Tamil Nadu, Uttar Pradesh and Goa and Union Territories of Daman & Diu, Dadra & Nagar Haveli, Chandigarh and Pondicherry. Shri Santosh Gangwar, Minister of State for Petroleum & Natural Gas also attended the meeting. The Ministers from States who participated are Shri Sita Ram, Excise Minister Andhra Pradesh, Shri M.M.Nanaiah, Excise Minister, Karnataka, Shri M.Mahadev, Sugar Minister, Karnataka, Shri Anil Deshmukh, Excise Minister, Maharashtra, Shri N.Sidqui, Excise Minister, Uttar Pradesh, Shri Babu Ram, Food and Civil Supplies Minister, Uttar Pradesh, Shri O.Paneerselvam, Minister, PWD, Prohibition & Excise, Tamil Nadu and Shri R.Jeevanandam, Agriculture Minister, Tamil Nadu.

The meeting was convened to provide further momentum to the Government’s initiative for encouraging use of bio-fuels obtained from renewable sources which help reduce our import dependence. Currently country imports about 70% of its crude requirements worth about Rs. 78,000 crore per annum. The Minister reviewed the State-wise requirement of anhydrous ethanol and its availability. Speaking to media Shri Ram Naik informed that among the issues discussed were:-

1. progress made by the State Governments in setting up infrastructure for ethanol production,
2. simplifying procedures for issue of permits/licenses both to the ethanol suppliers and to the oil companies,
3. making these licenses company-specific instead of location-specific,
4. extending validity of the permit for bulk quantities and for longer periods,
5. facilitating unloading of supplier trucks in the absence of excise officials,
6. waiving of "inter-state" import duty on ethanol transported from other States.

Stating that a silent revolution is taking place in the field of sugarcane production, Shri Naik expressed satisfaction over the wide spread interest generated among the people keeping in mind the tremendous benefits to the country of ethanol blending with auto fuels. Besides supplementing the domestic resources of hydrocarbons, ethanol blending will bring better returns to the sugarcane growing farmers, help reduce emission through more efficient combustion of fuels, create more jobs in distilleries and rural areas and give a boost to equipment manufacturers for distilleries and allied industries.

The total consumption of petrol in India during 2001-02 was about 7 million tones. The petrol consumption in nine states and four Union Territories proposed to be covered in the first phase of implementation of ethanol-petrol blend project was over 4.6 million tones i.e. approximately 65%. At this level of consumption, the estimated ethanol required for blending with petrol would be in the range of 32 to 35 crore litres per year. The blended fuel would be supplied through 11, 538 retail outlets in these States and Union Territories.

For the future, the 5% blend of ethanol and petrol would be extended to the entire country in the second phase. The proportion of blend would be increased to 10% in petrol in the third phase after BIS specifications are modified. No modification is required in vehicles with 10% blend of ethanol. In the next phase ethanol will also be blended in diesel depending on the success of research and development studies.

Shri Naik stressed that the testimony of tremendous interest shown by different sectors can be gauged by the fact that at the moment three events are taking place with the common subject of encouraging use of bio-fuels. In addition to this meeting, Confederation of Indian Industry has organized a three day International Seminar on the subject and the Parliamentary Consultative Committee attached to the Ministry of Petroleum & Natural gas would discuss the ethanol blending programme later in the day.