OMCs are regularly floating EoI to encourage the production of biodiesel
The government has taken various steps towards achieving 20 per cent blending of ethanol in petrol which includes allowing the 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 the enhanced ex-mill price of ethanol year on year from ethanol supply year 2017. GST has been lowered to 5 per cent on ethanol for EBP Programme besides an 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 per cent, as of 26.07.2021. The information was shared by the Minister of State for Petroleum and Natural Gas, Rameswar Teli in Lok Sabha.
The present percentage of blending of biodiesel in diesel is less than 0.1 per cent. The National Policy on Biofuels – 2018 prescribes the indicative target of 5 per cent blending of biodiesel in a diesel by 2030.
Availability of biodiesel has been low in the last few years due to the increase of price and non-availability of feedstock for biodiesel. Some biodiesel is also being marketed by agencies other than oil marketing companies (OMCs).
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.
