Page 9 - Plastics News November 2021

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The Quest for Sustainable Development

While the COP26 Climate Conference in Glasgow (on 4th November) had deliberations to help
find sustainable solutions to tackle plastic pollution around the world to give governments and
industry groups the evidence needed to make better decisions around plastic policies, back home
the Indian government is also contributing its share towards sustainable energy.
The government has recently hiked the price of ethanol extracted from sugarcane for blending in
petrol by up to Rs 1.47 per litre for 2021-22 marketing year starting December, as part of its target
to achieve 20 per cent doping by 2025. A higher blending of ethanol in petrol will help cut India its
oil import bill and also benefit sugar cane farmers as well as sugar mills. The Cabinet Committee on
Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, gave its approval for fixing
a higher price for ethanol derived from different sugarcane-based raw materials under the Ethanol
Blended Petrol (EBP) Programme for Ethanol Supply Year (ESY) 2021-22 starting next month.

The price of ethanol extracted from sugarcane juice has been increased to Rs 63.45 per litre from
the current Rs 62.65 per litre for the supply year beginning December 2021.The rate for ethanol
from C-heavy molasses is increased to Rs 46.66 per litre from Rs 45.69 per litre currently and that of
ethanol from B-heavy to Rs 59.08 per litre from Rs 57.61 per litre. Oil marketing companies Indian
Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL),
which procure ethanol from sugar mills and distilleries, will also bear the GST and transportation
costs on the ethanol procured for doping in petrol.

The government has been implementing Ethanol Blended Petrol (EBP) Programme, wherein OMCs
sell petrol blended with ethanol up to 10 per cent. India has plans to increase the blending to 20
per cent by 2025 and experts are of the view that ethanol blending with petrol has touched 8 per
cent in the 2020-21 marketing year (December-November) and is expected to reach 10 per cent
next year.. The CCEA approval will not only facilitate the continued policy of the government in
providing price stability and remunerative prices for ethanol suppliers but will also help in reducing
the pending arrears of cane farmers and dependency on crude oil imports. It will also help in savings
in foreign exchange and bring benefits to the environment in its own way.

Further, the government has also decided that oil PSEs (Public Sector Enterprises) should be given
the freedom to decide the pricing for 2G (Second Generation) ethanol, as this would help in setting
up advanced biofuel refineries in the country. Already, oil marketing companies (OMCs) are deciding
the grain-based ethanol prices.
Though it is said that the decision to allow Oil PSEs to decide the price of 2G ethanol would
facilitate setting up advanced biofuel refineries in the country, it remains to be seen for only time
will tell are we on the right track to meet the objectives..

Rajiv B.Tolat
Hon. Editor
publication@aipma.net

8 PLASTICS NEWS NOVEMBER 2021 9 PLASTICS NEWS NOVEMBER 2021