The Government of India through its oil marketing companies (OMCs) is implementing Ethanol Blended Petrol (EBP) Programme, wherein ethanol is being blended in petrol to achieve the objectives of reducing import dependence, promote clean fuel and provide a boost to agriculture. This was informed by Minister of State for Petroleum and Natural Gas Mr. Rameswar Teli in Lok Sabha. The Ministry of Petroleum & Natural Gas vide its notification directed oil marketing companies (OMCs) to sell 10 per cent ethanol-blended petrol as per Bureau of Indian Standards (BIS) specifications.
The Government, since 2014, has allowed procurement of ethanol produced from other non-food feedstock besides molasses, like cellulosic and lignocelluloses materials like cotton stalk, wheat straw, rice straw, bagasse, bamboo etc. including petrochemical route. The steps will help to promote the use of ethanol and provide employment opportunities in the rural areas besides 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; lowered GST rate; 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.