Ethanol Production in India Likely to Double by November 2021, Targeting a Low Carbon Future
Government of India has provided a deadline of 15 October for sugar mills, to submit the proposals for Ethanol capacity additions in order to benefit from the soft loans scheme announced in the year 2018. In line with the increased inclination of government to develop an alternative fuel economy, numerous manufacturers showcased heavy interest in entering the market with optimism over robust industrial demand of Ethanol in a span of 5 to 10 years. According to the available figures, government is eyeing to increase existing Ethanol production capacity of 4260 million litres to 5920 million litres within 2 years. This step is intended to provide enough supply of Ethanol for encapsulating the target for 10 per cent Ethanol-petrol mixing by 2022. As of now, the targeted Ethanol to petrol mixing is 7.5-8 per cent by November 2021. To consolidate premium funds for sugar mills, government is likely to further increase the cost price of Ethanol payed by the refiners to the Indian companies.