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Factories may get permission to set up ethanol pumps in future

Union Minister for Road Transport and Highways, Nitin Gadkari, said on Friday that the Indian Oil Corporation is set to open 400 ethanol pumps. In a bid to promote eco-friendly fuel alternatives and reduce import expenditure, he emphasized the government’s intention to also allow ethanol pumps for sugar and ethanol factories in the near future.

While addressing the inauguration program of the Ethanol Project and Incineration of Boiler of Ashok Sahakari Sakhar Karkhana, Gadkari said, “I have approached the Ministry of Petroleum to allow factories to set up ethanol pumps. And, we are also considering granting permission to ethanol pumps for factories.”

Gadkari emphasized the imminent shift towards green fuel vehicles, with cars expected to run entirely on 100% ethanol in the near future. This transition aims to not only curb pollution but also save significant sums spent on imports.

Currently, E20 fuel is available at 9,700 stations across the country, with the number steadily increasing. The government is leaving no stone unturned to promote ethanol production in the country.

The Government of India has been implementing the Ethanol Blended with Petrol (EBP) Programme throughout the country, wherein Oil Marketing Companies (OMCs) sell petrol blended with ethanol. Under the EBP Programme, the government has fixed the target of 20% blending of ethanol with petrol by 2025.

In order to achieve the target of 20% blending by 2025, about 1016 crore litres of ethanol is required, and the total requirement of ethanol including for other uses is 1350 crore litres. For this, about 1700 crore liters of ethanol-producing capacity are required to be in place by 2025, considering the plant operates at 80% efficiency. The Government has estimated the demand for ethanol required for 20% blending by 2025, keeping in view the growth of petrol-based vehicles in the two-wheeler and passenger vehicle segments and the projected sale of Motor Spirit (MS).

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