The present percentage of blending of biodiesel in diesel is less than 0.1 per cent, the government informed the Lok Sabha and noted that National Policy on Biofuels, 2018 prescribes as indicative target of 5 per cent blending of biodiesel in diesel by 2030.
Minister of State for Petroleum and Natural Gas Rameshwar Teli said that the government has taken various steps towards achieving 20 per cent blending of ethanol in petrol.
These include allowing use of sugarcane and foodgrains (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 from ethanol supply year 2017.
The measures also include lowering GST rate to 5 per cent on ethanol for EBP Programme, amending Industries (Development & Regulation) Act for free movement of ethanol, interest subvention scheme for enhancement and augmentation of ethanol production capacity in the country.
He said the average ethanol blending percentage in petrol for the ethanol supply year 2020-21 is eight per cent as on July 26 this year.
“The present percentage of blending of biodiesel in diesel is less than 0.1 per cent. The National Policy on Biofuels, 2018, prescribes as indicative target of 5 per cent blending of biodiesel in diesel by 2030,” he said.
The minister said that availability of biodiesel has been low in the last few years due to the increase of price and non-availability of feedstock for biodiesel.
Some biodiesel is also being marketed by agencies other than oil marketing companies.
“To increase the supply of biodiesel in the country, OMCs are regularly floating Expression of Interest (EoI) to encourage the production of biodiesel from used cooking oil,” he said.
