India is expected to accrue foreign exchange savings of up to ₹ 12,000 crore every year after four years through the ethanol blending programme, Prime Minister Narendra Modi today said.

 

Speaking at an event to mark the World Biofuel Day, Modi said: “The country has set its course to produce nearly 450 crore litres of ethanol in the coming four years. Ethanol blending in petrol increased from 38 crore litres in the ethanol supply year 2013-2014, to an estimated 141 crore litres in the ethanol supply year 2017-2018.  The Government had also approved the National Policy on Biofuels in June 2018.”

Higher ethanol production has resulted in savings to the exchequer due to lower import of crude oil.

 

Modi said: “India has saved forex worth ₹ 4,000 crore in the last financial year due to savings from ethanol blending programme. The government aims to increase these savings to ₹ 12,000 crore per annum over the next four years,” he said.

India’s crude oil import bill for the financial year 2017-2018 stood at $ 87.725 billion or ₹ 5.65 lakh crore.

Modi also said that the Centre is pushing for bringing more agricultural produce and waste to be converted into ethanol.

 

He said, “We also aim for an earning of ₹ 20,000 crore solely through conversion of sugarcane to ethanol. This amount will aid the income of farmers. The Centre also wants more agrarian produce such as potatoes and agrarian waste to be converted into ethanol and we are working towards the same.”

“Biofuels can help reduce import dependency on crude oil. They can contribute to a cleaner environment, generate additional income for farmers & rural employment. Biofuels have synergies with various government initiatives, including enhancing farmers’ incomes, and Swachh Bharat,” he added.

 

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