The Union Cabinet approved amendments to the National Policy on Biofuels, 2018, to advance the date by which fuel companies have to increase the percentage of ethanol in petrol to 20%, from 2030 to 2025.
About:
The policy to introduce 20% ethanol in petrol will take effect from April 1, 2023.
India achieved 9.45% ethanol blending as on March 13, 2022. The Centre projects that this will reach 10% by the end of financial year 2022.
Benefits
Immense Benefits could accrue to the country by 20% ethanol blending by 2025, such as saving ₹30,000 crore of foreign exchange per year, increased energy security, lowered carbon emissions, better air quality, self-reliance, better use of damaged foodgrains, increased farmers’ incomes and investment opportunities.
The new policy would allow more feed stock for producing biofuel and foster the development of indigenous technologies.
Challenges
A 20% blend could require some changes and may even drive up the prices of vehicles.
A greater percentage of blending could also mean more land being diverted for water-intensive crops such as sugar cane, which the government currently subsidises.
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