Industry hails decision to allow blending of ethanol with petrol Read more: Industry hails decision to allow blending of ethanol with petrol

PUNE: The decision of the cabinet committee on economic affairs (CCEA) to approve the proposal for implementation of ethanol blended petrol (EBP) programme in the country is welcomed by the state sugar industry, which will have an additional and fixed source of income in ethanol production.

While the national demand for ethanol is 100 crore litres per year, Maharashtra will supply 14 crore litres in a year, said Vijaysinh Mohite-Patil, president of the All India Ethanol Manufacturers' Association.

Prakash Naiknavare, managing director of the Maharashtra State Co-operative Sugar Factories Federation Ltd, said here on Tuesday that the ethanol manufacturing factories private as well as those linked with co-operative sugar factories are set to supply seven crore litres of ethanol to oil companies by September this year.

The factories have to communicate their capacity to produce and deliver ethanol by Wednesday. The CCEA has fixed the price for ethanol at Rs 27 per litre.

The Union government has decided to allow oil companies to blend five per cent ethanol with petrol and distribute it across the country. It will not only reduce dependency over imported petrol, but also generate business opportunity for ethanol production from natural resources sugarcane. Experts say that the ethanol-blended fuel causes less pollution comparing to normal petrol.

For a long time, the sugar industry was waiting for this decision. It will not only offer another source of income, but will also give better return to sugarcane farmers, Naiknavare said.

Maharashtra has the capacity to produce of 80 crore litres of ethanol at present, Naiknavare said. "There are 55 ethanol producing plants in the state, of which 35 are linked with co-operative sugar factories."

source: TOI