India started its Biofuel policy in 2018 under which the 10% blending of petrol with ethanol was planned. This measure will save consumers an extra Rs 2 per litre tax starting in October. The increased tax on unblended fuel was suggested in the budget from October to encourage the use of cleaner fuel as part of the country’s energy transition and climate objectives.
The oil ministry and government think tank Niti Ayog collaborated on a roadmap for blending to build an ethanol economy in the country, with a goal of 5% blending by the end of 2022 and 20% by 2025. By 2030, the Centre has set a goal of blending 5% biodiesel with diesel. India has reached its target before time.
According to the roadmap, blending 20% of petrol with ethanol will save India $5 billion per year, or more than Rs 30,000 crore, on its oil import cost. In June of last year, Prime Minister Narendra Modi increased his bet on ethanol in India ‘s fight against climate change by pushing back the deadline for 20% ethanol blending from 2025 to 2025 and starting a pilot project at three Pune gas pumps to operate vehicles entirely on the ‘swadeshi’ fuel.
“The country is rapidly moving toward clean energy, and we will see a huge benefit from this, particularly in the agriculture sector,”
he stated during a World Environment Day celebration.
Ethanol is ethyl alcohol, usually known as “drinking alcohol,” that is manufactured from molasses, cereals, and farm waste. As one of the alcohol options for hand sanitisers, ethanol has become a part of our daily lives as a result of the pandemic.
By increasing the octane level, it is less polluting and provides equal efficiency at a lower cost than petrol. Ethanol for automotive usage is known as ‘E100,’ and petrol with 20% ethanol is known as ‘E20’.
To fulfill the promises made in COP 26 summit, blending ethanol is a step towards a healthier and cleaner environment. To reduce our reliance on non- renewable fossil fuels which leads to the increase in green house gases when burnt.
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