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India Saves INR 2341 Crore of Foreign Exchange by Blending of Ethanol in Petrol

The current annual ethanol production capacity in the country is approximately 1037 crore litres, informed Minister of Power and Renewable Energy R.K. Singh.

March 15, 2023. By Anurima Mondal

As per inputs received from Indian Oil Corporation Ltd., approximately INR 2341 crore of foreign exchange was saved by blending of ethanol in petrol during 2021-22. The current annual ethanol production capacity in the country is approximately 1037 crore litres, informed Minister of Power and Renewable Energy R.K. Singh in the Rajya Sabha.

According to the roadmap prepared by NITI Aayog which is based on the projected sale of Motor Spirit (MS), the estimated requirement of ethanol for blending with petrol is 542 crore litres for Ethanol Supply Year (ESY) 2022-23, 698 crore litres for ESY 2023-24, 988 crore litres for ESY 2024-25 and 1016 crore litres for ESY 2025-26.

The installed production capacity of biogas plants is 8,45,008 m3 per day. The national Bio-Energy programme launched in November 2022 for the period FY 2021-2022 to FY 2025-26 provides Central Financial Assistance (CFA) for setting up about 1.66 lakh small biogas plants and about 80-100 compressed biogas (CBG) plants.

Launched in October 2018, the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative envisages setting up of 5000 Compressed Biogas (CBG) plants for production of 15 Million Metric Ton (MMT) per annum of compressed biogas by 2023-24.

The green hydrogen production in the country is at R&D and pilot scales, so there is no substantial foreign currency saving and employment generation through green hydrogen, at present. The National Green Hydrogen Mission targets import savings of about INR 1 lakh crore and generation of about 6 lakh jobs by 2030.

Currently, there is limited production of green hydrogen in the country, under Research & Development projects and pilot projects. The total hydrogen production capacity from renewable sources is approximately 235.4 tonnes/annum. Under the National Green Hydrogen Mission, the Green Hydrogen production capacity of 5 Million Metric Tonne Per Annum (MMTPA) has been targeted by 2030.
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