Centre wants ethanol to become your next cooking fuel
What's the story
The Indian government is working on a policy to promote ethanol as a mainstream cooking fuel. The move is aimed at reducing the country's reliance on imported liquefied petroleum gas (LPG). Industry insiders familiar with the development told The Economic Times that the Petroleum and Natural Gas Ministry is actively developing this policy framework.
Implementation strategy
Policy to include subsidies, supply chain development
The proposed policy will include provisions for subsidies and supply chain development to encourage the use of ethanol.
Industry bodies representing fuel suppliers are also said to be in talks with the government on this framework.
An unnamed executive told ET, "An alternative clean cooking policy is in the works that would help ethanol to be adopted alongside LPG as a household cooking fuel."
Eco-friendly alternative
Government may introduce subsidy scheme for ethanol cooking
Ethanol is a green fuel made from the fermentation of sugars and grains.
The use of ethanol as a cooking fuel could help India cut down on its LPG dependence and save money on its growing fuel bill.
An industry executive said, "To promote ethanol cooking, the government may roll out some sort of a subsidy scheme too that would be capital-driven or an ongoing fiscal commitment."
Production capacity
Ethanol production capacity and consumption
India's ethanol production capacity has crossed 20 billion liters per year, with another four billion expected to come online in this financial year.
After the government's E20 blending program consumes about 11 billion liters annually, liquor makers, pharma companies, and chemical manufacturers consume another three-three and a half billion liters.
This leaves an unused capacity of nearly seven billion liters.
Technological advancements
Oil marketing companies exploring ethanol-based stoves and dispensing systems
Oil marketing companies are also looking into the possibility of ethanol-based stoves and dispensing systems.
They are said to be in talks for a possible partnership or acquisition of available ethanol cooking technologies.
To implement this scheme, these companies might be asked to set up automated teller machines (ATMs) for users to procure ethanol in canisters for their stoves.
Export potential
Potential for ethanol exports to neighboring countries
With its surplus ethanol production capacity, India may also consider exporting this green fuel to neighboring countries like Nepal, Bangladesh, and Indonesia.
These nations have 10% ethanol blending targets but lack the necessary feedstock and distilling capacity.
The move would not only help India make use of its excess production but also assist these countries in achieving their blending targets.