Indian companies can now export 2G ethanol: What is it?
What's the story
The Indian government has allowed the export of second-generation (2G) ethanol, a sustainable fuel derived from non-food feedstocks. The decision was announced by the Directorate General of Foreign Trade (DGFT) today. The new export policy mandates companies to obtain an export authorization and feedstock certificate from the concerned authority for exporting this eco-friendly fuel.
Eco-friendly fuel
What is 2G ethanol?
The 2G ethanol is produced from non-food feedstocks such as agricultural residues, grasses, algae, as well as other renewable materials. It is considered a sustainable alternative to traditional fuels because it has low CO2 emissions and does not compete with food crops for land. The new export policy applies to ethanol under ITC (HS) Code 22072000, covering the ethyl alcohol and other denatured spirits of any strength.
Policy implementation
Export policy comes into immediate effect
The DGFT's notification regarding the export of 2G ethanol comes into immediate effect. It adds an additional condition for exporting the second generation ethanol under Schedule-II of the ITC (HS) 2022. This move aligns with India's sustainability goals by promoting the use of eco-friendly fuels such as the 2G ethanol.