North News

New Delhi, January 29

Union Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved an increase in ethanol procurement prices for public sector oil marketing companies (OMCs) under the Ethanol Blended Petrol (EBP) Programme for the 2024-25 Ethanol Supply Year (ESY). The ex-mill price of ethanol derived from C Heavy Molasses (CHM) has been raised 3 percent to ₹57.97 per litre from ₹56.58 per litre. The government aims to provide price stability for ethanol suppliers while reducing crude oil imports and foreign exchange spending.

India has advanced its target of 20% ethanol blending in petrol to 2025-26, up from the earlier goal of 2030. In 2024-25, OMCs plan to achieve 18% blending, up from 14.6% in 2023-24. Over the past decade, ethanol blending has saved ₹1.13 trillion ($13.5 billion) in forex and replaced 193 lakh metric tonnes of crude oil.

The government has expanded ethanol distillation capacity to 1,713 crore litres annually, promoted flex-fuel vehicles, and facilitated Long-Term Offtake Agreements (LTOAs) to establish Dedicated Ethanol Plants (DEPs) in ethanol-deficit states. Investments in distilleries, logistics, and storage have increased, creating employment opportunities and ensuring faster payments to sugarcane farmers.