OMCs are regularly floating EoI to encourage the production of biodiesel

New Delhi : The Minister of State for Petroleum and Natural Gas,  Rameshwar Teli in a written reply to a question in the Lok Sabha today informed that the Government has taken various steps towards achieving 20% blending of ethanol in petrol which includes allowing use of sugarcane and food grains (maize and surplus stocks of rice with Food Corporation of India)  for conversion to ethanol; administered price mechanism for procurement of ethanol under EBP Programme including enhanced ex-mill price of ethanol year on year from ethanol supply year 2017; lowered GST rate to 5% on ethanol for EBP Programme; amendment in Industries (Development & Regulation) Act for free movement of ethanol; interest subvention scheme for enhancement and augmentation of ethanol production capacity in the country. At present average ethanol blending percentage in petrol for the ongoing Ethanol Supply Year 2020-21 is 8%, as on 26.07.2021.

The present percentage of blending of biodiesel in diesel is less than 0.1 Percent. The National Policy on Bio fuels – 2018 prescribes as indicative target of 5% blending of biodiesel in diesel by 2030.

Availability of biodiesel has been low in the last few years due to increase of price and non availability of feed stock for biodiesel. Some biodiesel is also being marketed by agencies other than Oil Marketing Companies.

Further, to increase the supply of Biodiesel in the country, OMCs are regularly floating Expression of Interest (EoI) to encourage the production of biodiesel from Used Cooking Oil.