The Indian Sugar Mills Association (ISMA) has welcomed two key proposals in the Budget 2023-24 proposal to promote clean and green energy, particularly when the world is moving towards its transition. 

Stating the Budget clearly lays out the mandate straight, ISMA, a body of private sugar mills said, said that the proposal of introducing a 5 per cent compressed bio-gas (CBG) mandate in due course for all organisations marketing natural and bio-gas will give a big boost to its production.

Also read:Budget 2023: Bid to end tax anomaly between biogas, natural gas to promote green fuel

Pointing to Finance Minister Nirmala Sitharaman’s statement that for the collection of bio-mass and distribution of bio-manure, appropriate fiscal support will be provided, the association said making it compulsory for oil marketing companies (OMCs) and GAIL, which markets natural and bio-gas, was a testament to the Centre’s focus towards green energy transition. 

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Boost to ethanol blending

The exemption of basic customs duty on denatured ethyl alcohol will boost the ethanol blending programme. This will make the import of denatured ethyl alcohol cheaper. Industries, which use denatured ethyl alcohol as their raw material like pharmaceuticals, chemicals and paints, can rely on domestic availability to fulfil their raw material requirement, ISMA said. 

“The entire cane molasses could be used for ethanol production for the ethanol blending programme. This will address the shortfall in ethanol supplies by sugar mills, and they will be able to fulfil their ethanol supply commitments to OMCs,” the association said.

Also read:Budget 2023: Govt allocates ₹35,000 crore for OMC refineries, replenishing strategic petroleum reserves

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