The mandatory 5% ethanol blending programme is now a reality. The Ministry of Petroleum on Friday, the 11th of January, 2013, finally issued a gazette notification making 5% ethanol blending with petrol mandatory across the country. The 5% ethanol blending programme was so far made applicable in only 13 states of the country with blending level of about 2% against a mandatory target of 5%, but with this gazette notification it becomes mandatory for OMCs to achieve 5% ethanol blending programme for the entire country.
EBP has been in the works for quite a long time and the sugar industry, in particular has been its biggest champion, simply for its all round merits. However, after several rounds of inter-ministerial level discussions and committees which failed to arrive at a policy for the price of ethanol and unreasonable opposition by vested interests, the Cabinet Committee on Economic Affairs or CCEA on 22nd November 2012, approved the policy for procuring ethanol by Oil Marketing Committees (OMCs) from either domestic or international ethanol suppliers. The CCEA left it on the OMCs and ethanol suppliers to decide the price of ethanol procurement, leaving it to the market forces. It also gave freedom to OMCs to import ethanol in case there is any domestic shortfall of ethanol.
The OMCs have already floated tenders to procure ethanol for the ethanol blending programme. Bharat Petroleum Corporation Ltd., on behalf of all the three OMCs, has uploaded an online e-tender document for procurement of 1.05 million KL, which can upto 1.4 million KL anhydrous ethanol. The gazette notification by the Petroleum Ministry will stead fast the process of early finalization of tenders by OMCs to procure ethanol, which will make sure the country doesn’t miss another deadline for the rollout of the EBP, which has already been delayed. The CCEA order scheduled the rollout on 1st December 2012, but has already been delayed.
Many countries are already reaping rich benefits from the use of ethanol mixed petrol as an automobile fuel. Ethanol fuel is widely used in Brazil and in the United States, and together both countries produced 87.1% of the world's ethanol fuel in 2011. India, though a late entry to this club, can accelerate ahead if EBP is implemented smoothly. It will reduce the country’s dependence on oil import and cut import bill. For automobile users, 5% ethanol blended petrol gives a much better mileage than pure petrol. It’s an environment friendly fuel and will remarkably reduce automobile pollution.
The sugar industry welcomes the notification. The industry has long rallied for the implementation of ethanol blending programme for the huge benefits to the environment and consumers. For sugarcane farmers who face cane payment uncertainties, ethanol blending programme provides an alternative market and steady payment from the millers who can ensure regular payment to the farmers.